A lot of my followers asked me recently… why I was so bearish ?
I will try to “justify” my bearish view in looking today, at the daily and at the 4 hours time frames, which, for me, both of them are quite representative of the recent and current price action which is likely to trigger further downside move towards the 60’000 at least if some important support levels were to be broken on a daily closing basis !!!
Under the pressure of a RSI bearish divergence confirmed a couple days ago which is also showing a double top formation in progress, which is for the time being, of course, still quite far away of its trigger level @ 56’425 !
In addition, the global picture is also showing a rising wedge pattern in progress, with its support line, which also coincides with the important D1 cluster level (currently @ 62’700).
Last daily closing level was below TS & conversion line and should be seen as the first warning signal for further downside which would be confirmed by ongoing closing level below TS or better
below the pivot support level @ 62’700.
Confirmation of the rising wedge downside breakout (@ 62’700) would give a technical target of 52’000 which is also currently the daily clouds bottom support level !!!
The double top target (@ 63’000) has already been filled in this time frame; it has been followed by a pullback attempt which has been, so far, rejected by all three major resistances !!!
Currently under pressure, slightly below the H4 clouds support zone .
RSI below 50.
Failure to quickly recover above MBB (currently @ 64’945) should open the door for former recent bottom @ 62’300 and then 61’700 (very minor uptrend line support level ) ahead of the psychological 60’000 level or even, potentially lower.
Levels to watch, on a daily closing basis, are the following :
R1 : 64’550
S1 : 62’700
A daily close either above or below one of the level above mentioned should trigger a roughly 4’500 points.
Have a great weekend and may your long goes up and your short goes down
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All views expressed on my analysis are my own and do not represent the opinions of any entity, whatsoever with which I have been, I am now or I will be affiliated with. Any action you take upon the information on those analysis is strictly at your own risk and should not be considered as an advisory. The author assumes no responsibility or liability for any errors or omissions in the content of his analysis. The information contained is provided on an «as is» basis, with no guarantees of completeness, accuracy, usefulness or timeliness and without any warranties of any kind whatsoever, express or implied.