Potential reversal

2 thg 8, 2016

I've got a bullish formation on the 1Hr chart. There's a hammer showing but waiting to see how strong the advance is to confirm it. We've also crossed the conversion line, which is a first bullish indicator. There is still a larger bearish trend showing on the 1Hr, 4Hr and Daily, but the daily has improved slightly by wicking back up into the cloud, so it no longer shows a break through in the bottom of the cloud. Price was stopped at the psychological barrier of $600 or 4000CNY. The next few hours should help to clarify whether the larger bearish trend is changing to a more bullish profile or not.

My previous short was closed at $600 when price failed to penetrate and sustain the fall. There is risk here is for a sharp reversal, because some good charting from Wavescientist has shown that a second wave may finish at this support point 590-603 (exactly where we ended up). Risk here must be gauged with the potential of a reversal as today has been quite a day. 1 major support and 1 pivot point broken, pierced through $600 a few times before regaining bullish momentum. Need to monitor the changing trend over the next few days.

2 thg 8, 2016

Ghi chú

I'm starting to get bearish indicators returning to the lower time frames. I think we're headed for a retest of $600 soon.