Yesterdays chart we were watching the bulls as well as the shorts chart and I stated "in order to see these shorts get squeezed, the bulls need to break above $3486 (perhaps to somewhere in the 3500's) and then pull back briefly for a higher low and then break out again and into the 3600s+ for shorts to truly feel any pressure and create the squeeze to give a good size run up"
The bulls were able to break above $3486 and ran another $100 up to $3586 before pulling back to set their lower high which they set down at $3437. Bulls are now back on the move and would love to break into $3600's tonight. If they set a lower high here, they'd then again look for a higher low and just tighten up the pattern before the eventual bear or bull break.
I personally did scale into positions in the upper $3400's on the consolidation yesterday and will comfortably use the stop loss from our higher low. Thus far, volume looks fine with no red flags. EMAs on 4 hour are slowly catching up and could potentially serve as a support (as well as another higher low) tonight or tomorrow. Its nice to see some bullish movement but still a lot of work on daily and weekly charts to reverse any trends on the larger time frames.
Just My 2 Sats!
The bulls were able to break above $3486 and ran another $100 up to $3586 before pulling back to set their lower high which they set down at $3437. Bulls are now back on the move and would love to break into $3600's tonight. If they set a lower high here, they'd then again look for a higher low and just tighten up the pattern before the eventual bear or bull break.
I personally did scale into positions in the upper $3400's on the consolidation yesterday and will comfortably use the stop loss from our higher low. Thus far, volume looks fine with no red flags. EMAs on 4 hour are slowly catching up and could potentially serve as a support (as well as another higher low) tonight or tomorrow. Its nice to see some bullish movement but still a lot of work on daily and weekly charts to reverse any trends on the larger time frames.
Just My 2 Sats!
