I started this specifically for days like today. This is a way to keep myself engage when I have no idea what is going on with the market. I made a commitment to do my best to make a prediction even when I didn't have much to go off. Just keep that in mind!
Yesterday I was looking at a diamond bottom forming and went long at $9,800. That was quickly stopped out and I turned fully bearish once we dipped below $8,000. I drew some preliminary trend lines for the bears (dotted red) that I was keeping an eye on. After golfing today I was very happy to see that the bulls pushed the price through the upper level of that trend. We are now testing horizontal resistance.
This is not a spot to go long...sell resistance and buy support! On the other hand I also wouldn't short this rally either. We are looking at a double bottom, then a higher low, followed by a higher high. The 12 & 26 EMA's appear to be crossing right now. That is important because it is the default on GDAX and seems to be what a lot of traders use.
My prediction is a quick rally to $10,000 and then we range over the weekend from $9,400 - $10,000.
I am no longer bearish and have shifted to neutral. I will be sitting on the sidelines until I can be more confident one way or another.
Happy Trading!
Yesterday I was looking at a diamond bottom forming and went long at $9,800. That was quickly stopped out and I turned fully bearish once we dipped below $8,000. I drew some preliminary trend lines for the bears (dotted red) that I was keeping an eye on. After golfing today I was very happy to see that the bulls pushed the price through the upper level of that trend. We are now testing horizontal resistance.
This is not a spot to go long...sell resistance and buy support! On the other hand I also wouldn't short this rally either. We are looking at a double bottom, then a higher low, followed by a higher high. The 12 & 26 EMA's appear to be crossing right now. That is important because it is the default on GDAX and seems to be what a lot of traders use.
My prediction is a quick rally to $10,000 and then we range over the weekend from $9,400 - $10,000.
I am no longer bearish and have shifted to neutral. I will be sitting on the sidelines until I can be more confident one way or another.
Happy Trading!
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