In my previous post, I expected a decent hike to 5k which marks the 4th wave (this can still happen and so the question mark). But after the 2 failed attempts to cross the 50 Day EMA, this rally is weakened. No wonder the median (dotted) line is now appearing to be resistance. SL - $4100
It is possible that 4th wave has not ended and this could be the sub-wave C which will take it to the channel top at 5k (marked by the green circle). The linked post talks about this.
I broke down this entire correction into ABC (white) for simplicity and we appear to be in the last leg of the C wave. Now the previous bottom can act as support as the weekly 200 MA is there, if not, the green zone is a good support zone and also meets the bottom of the red channel
In the weekly chart as well, we can observe that 200 EMA (pink) acted as major resistance and blocked multiple attempts recently to cross it, thats why I believe this rally is weakened. At the same time, 200 MA line can offer support at $3200
It is possible that 4th wave has not ended and this could be the sub-wave C which will take it to the channel top at 5k (marked by the green circle). The linked post talks about this.
I broke down this entire correction into ABC (white) for simplicity and we appear to be in the last leg of the C wave. Now the previous bottom can act as support as the weekly 200 MA is there, if not, the green zone is a good support zone and also meets the bottom of the red channel
In the weekly chart as well, we can observe that 200 EMA (pink) acted as major resistance and blocked multiple attempts recently to cross it, thats why I believe this rally is weakened. At the same time, 200 MA line can offer support at $3200
Comentarios:
Back to the dreaded Weekly 200 EMA
Comentarios:
the 200 Weekly EMA, stops the rally in its tracks again!
If the 200 MA does not hold this time, price can drop to the bottom of the channel and go below $3000