Hi all,
Looks complicated but really isn't. The dashed green trend lines are the neck lines of previous head & shoulder patterns and we are about to touch them.
So, obviously, a reaction is to be expected which will give us a new higher low that will form the left shoulder of the inverse H&S pattern. This is also the Last Point Of Support (LPS) of the wyckoff accumulation i shared in my previous post.
Once 47k is tested and validated as support, i expect a strong bounce to the upside. If it's lost, good luck.
Next level would be 52.900 which is also the top of the mega cup and handle formation that translates in to a breakout as well!
However the real big resistance awaits at 54.800 This is the neck line that took us 25% below. It must be crossed with momentum.
Markets are in a standby mode, waiting for the debt ceiling discussions to be finalized. $1 Trillion vs $3.5 trillion makes a difference :)
But, hey what do i know.
Trade safe!
Looks complicated but really isn't. The dashed green trend lines are the neck lines of previous head & shoulder patterns and we are about to touch them.
So, obviously, a reaction is to be expected which will give us a new higher low that will form the left shoulder of the inverse H&S pattern. This is also the Last Point Of Support (LPS) of the wyckoff accumulation i shared in my previous post.
Once 47k is tested and validated as support, i expect a strong bounce to the upside. If it's lost, good luck.
Next level would be 52.900 which is also the top of the mega cup and handle formation that translates in to a breakout as well!
However the real big resistance awaits at 54.800 This is the neck line that took us 25% below. It must be crossed with momentum.
Markets are in a standby mode, waiting for the debt ceiling discussions to be finalized. $1 Trillion vs $3.5 trillion makes a difference :)
But, hey what do i know.
Trade safe!
