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May 31, 2018, 11:06:49 PM |
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Price inching upwards with an important resistance to clear at $7.9k overhead.
Resistances & Supports
Resistances - Yesterday's resistance levels still in place.
Now that price has fallen below the intermediate level at $7.5-7.4k, this will act as resistance on the way back up. Above $7.5k we will begin to set our sights on the higher levels such as $7.9-7.7k.
Supports - Yesterday's support levels still in place.
At the moment we are coming down to a very important support zone from $7.2-6.9k. This is an important level to hold due to it being an important fib level and the diagonal trendline support for the symmetrical triangle pattern in play.
Classical Chart Patterns.
The larger time frame symmetrical triangle is still holding up as price nears the supporting trendline. Should price break and close on the daily below $6.9k this pattern will be resolved to the downside and the measure rule sets us well beneath the current bottom at $6k.
Ichimoku Cloud.
The 2H cloud is now acting as resistance. Though, at the moment the tenkan and kijun are in a cluster which may act as support for now and send price back upwards to retest the cloud. We also see a bullish TK cross on the 2H cloud (tenkan/blue line over the kijun/red line), which gives the lower time frame a bullish bias.
Oscillators.
Looking at a few daily oscillators we see some bullish signals in the making as the stochastic oscillator has a bullish cross, with the MACD looking to do the same very soon. The last two times we saw these signals sustain price went on to make very strong moves to the upside.
Conclusion.
Price continues to rally, struggling a bit to decisively break above resistance at the moment, but it seems more upside is to come.
The next resistance ahead is the previous support and .618 fib level at $7.9-7.7k. The way price handles this block will be very telling if this is just a "dead cat bounce" or a true reversal.
Those that followed the previous updates and recommendations to scale in buys down to $6.8k would be well off to set their stop losses in profits in the case this was nothing more than a bounce.
That said, there are multiple short-term technicals alluding to continued bullish price action.
A break of $10k would be a higher time frame higher high, following what would be a higher low if $7k stands as a swing low, indicating a confirmed uptrend.
Twitter: @BoomerCapital
Web: boomerangcapital.org
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