What Market Phase are we entering into has been the introductory question for our last appointments. Are we going to listen to the Bulls or the Bears? Are we going to see a Bull Market or a Bear Market?
Welcome to Surfing the Market, we are already at our 49th appointment and I hope that with these easy tech analysis we have helped you in some forms, even just to evaluate different market perspectives.
Let’s start from our usual weekly perspective
Source: Tradingview - Weekly Chart
In the last weeks we had some lateralization on the 28-29k$ level and the last night we faced the breakout of the 30k$ level.
What do I expect from a daily perspective?
Source: Tradingview - Daily Chart
Price is now testing aggressively the Red line resistance, and since two weeks, such level has been tested almost every day. That can likely means that such resistance is going to fall soon. Anyway, these are the scenarios where the most traps happen, by eventually breaking upwards the red line, triggering long positions and then facing a big red candle. So, be careful if you are planning to place a Long order in that area.
That is what I wrote the last weekly analysis. The red resistance fell, but the price has also found a temporary wall at the price of 30.500$ that is causing a momentaneous set-back. Not a real bull trap for the moment, but better being careful.
Source: Tradingview - Strength dollar index
DXY is keeping dropping and we are still in the 102 points area. With recent whistles of the rising of the BRICS alliance, and the worsening of the relationships between USA and Saudi Emirates, the US Dollar seems doomed. The next months will be the key for the interpretation of the following financial cycle.
Both of the examined Moving Averages (50 and 200 periods) are still below the price action: both of them are growing and when getting closer to the price, they may act as a dynamic psychological support.
Source: Tradingview - Daily Chart
Ichimoku Clouds are passing through the potential weakness days, and we are going towards a wider green cloud area that in a potential retrace, may act as a support, showing some overlapping with the 50MA as well (red line).
Source: Tradingview - Daily Chart
And now, what from a Volume perspective?
Source: Tradingview - Daily Chart
Volumes have started showing some interest again, with some raise in the total volumes, anyway, the next days and volume confirmation are necessary to define the new bull-trend.
What to observe particularly?
I expect that the red line may act as a support, the price action to accumulate some volumes and then eventually start again with an uptrend. But I want to see the price consolidating in this area for a few days before being positive for another bullish movement.
Stay tuned and be sure to follow to get noticed when my contents come out.
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None of what I write can represent a financial advice in any form. So Do your own research before taking any kind of action.