We have an incredibly obvious pennant forming since the weekend, which is now almost complete (most pennants break at the 75% mark) and so we must expect a big move very soon. Generally more weight should be given to the TA from higher timeframes, making a move down to $3700 (where the daily 50 & 100 MA are converging with an important trendline dating back to November) seem most likely.
The bullish view
The bullish view
- Generally after a pump this can be considered a continuation pattern
- The 4 hour Stochastic RSI is primed for a rise
- We have already struggled to stay above $4000, with it putting up strong resistance
- The daily Stochastic RSI has just crossed for downward momentum
- The weekly Stochastic RSI is at 100 and hasn't been this bearish since Dec 2017
The invaluable combined RSI & Stoch RSI indicator, plus the 50/100/200 Moving Average, are linked below.
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