The market is going to form a strong trend reversal signal. If the daily candle is closed at the current levels of below, the market will start forming a new swing high. This swing high will be higher than the previous one but RSI and MACD will make new "highs" lower than the previous ones. The price will diverge with the indicators and it will give us a bearish divergence. This is a strong trend reversal pattern which sometimes leads to a new trend in the opposite direction, sometimes it leads to a correction or sideways movements.
I don't think that we will get a new bearish trend , but the bearish divergence gives the additional signal supporting the correction movement from the current levels or 6000.00 resistance zone if the market tries to move higher.
I don't think that we will get a new bearish trend , but the bearish divergence gives the additional signal supporting the correction movement from the current levels or 6000.00 resistance zone if the market tries to move higher.
a swing high definitely looks close. i thought the selloff attempt from yesterday might have been it, but it hardly moved after the initial dump. so maybe we'll muster another try up. if we do, it's another great opportunity to take some profit and sell for the correction. i'm pretty confident we'll see much lower prices (low $4ks or high $3ks at least) over the next couple months.
