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 67th appointment and I hope that with these easy tech analysis we have helped you in some forms, even just to evaluate different market perspectives.
Source: Tradingview - Weekly Chart
Last week the price dropped with a spike in the 25500$ area. That was announced from some traders that stated how the VIX and the dollars were highlighting bearish signals for many assets. I inserted a new green line, that acted as a support back in May and has been broken just for a bearish trap that led then to a bullish movement up to 30.000$. I expect then that this support, being close to a psychological level as well, can be quite strong but IF broken, price will be likely aiming to the lower yellow support level.
Source: Tradingview - Daily chart
The drop happened after three weeks of an almost complete immobility of the price with low volume. And then the sell-off happened.
Source: Tradingview - Dollar Strength Index
DXY found a local top, and the price of commodities is likely to get a break from dropping, opening in the coming days for temporary reaction of the price.
Price is now below both of the averages. After some stabilization of the price, I expect to see some bear trap for a potential rise-up following after. To catch another bull trend some liquidity has to be “fished” from lower levels.
Source: Tradingview - Daily Chart
Price has dropped below the Cloud, making a potential reaction towards the red resistance in the 28500$ area likely when volumes recover.
Source: Tradingview - Daily Chart
Source: Tradingview - Daily Chart
Volumes are still quite low, with the exception of the two days of high volatility. We can expect more volumes entering into the market with more stability from the next week, when many institutes will re-open their activities.
The support I thought was strong and still, a massive drop happened. Still, I was saying that the moment was quite unsure and unstable. I did not open any position in these days, as there was too much uncertainty. Now, after some stabilization I will evaluate a long position if no other dropping moments will happen.
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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.
