Good morning, traders. As I mentioned yesterday, price appears to be following the H4 chart pattern. Yesterday's daily candle printed a nice bullish reversal and today, so far, it is printing a bullish engulfing candle. Just above price's morning high is the yellow level I pointed out which could provide support for price if we can close above it. The D3 candle, which closes today, hasn't closed below that level yet and the weekly candle is currently printing an almost perfect bullish hammer. Interestingly, we have not seen a weekly hammer print at all since the ATH. The initial target for this move up remains the blue box on/above that yellow level. We can also see the daily RSI pressuring its triangle resistance. That being said, the H1 TF is almost overbought but the H4 TF is just getting warmed up as RSI sits at 50. We could see a pullback toward $3410/20 before pushing higher.
Yesterday I stated:
"There is a trading technique that has traders going long when RSI prints a double bottom in conjunction with a price double bottom. This would be the case with the current H4 price structure as the first low printed on January 27th and the second printed slightly lower earlier this morning. We can clearly see the corresponding double bottom in the H4 RSI and, as I mentioned above, RSI is moving out of oversold which is usually the signal to go long. I'm not telling traders that this is what you should do; just describing one trading technique. Even utilizing it, you must employ good risk management. The daily candle, while still having just over 1/3 of the day left to go, is printing a possible nice reversal hammer."
Going long would have netted you profits into today. The shortening of the repeating H4 pattern, creating the orange wedge, suggests that price will had toward the descending yellow resistance. As always, traders should be looking for confirmations before entering trades so a close above the orange resistance should be the minimum. A close above the H4 pivot would also be considered bullish for pivot traders, as would a close above the daily pivot which currently sits at around $3690/$3700.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
Yesterday I stated:
"There is a trading technique that has traders going long when RSI prints a double bottom in conjunction with a price double bottom. This would be the case with the current H4 price structure as the first low printed on January 27th and the second printed slightly lower earlier this morning. We can clearly see the corresponding double bottom in the H4 RSI and, as I mentioned above, RSI is moving out of oversold which is usually the signal to go long. I'm not telling traders that this is what you should do; just describing one trading technique. Even utilizing it, you must employ good risk management. The daily candle, while still having just over 1/3 of the day left to go, is printing a possible nice reversal hammer."
Going long would have netted you profits into today. The shortening of the repeating H4 pattern, creating the orange wedge, suggests that price will had toward the descending yellow resistance. As always, traders should be looking for confirmations before entering trades so a close above the orange resistance should be the minimum. A close above the H4 pivot would also be considered bullish for pivot traders, as would a close above the daily pivot which currently sits at around $3690/$3700.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.