In a previous chart, I predicted a possible cup & handle on the 4-hour chart. Recent days had me questioning this idea. As crazy as it sounds, I don't think it's so unlikely anymore.
1. We are oversold on the RSI and MACD.
- A solid MACD crossover in this position would be huge.
2. The handle of the formation is still in play.
- The handle, however, is long and far from the high of the cup. This means that we need a stronger breakout than usual.
3. The cup's volume performed exactly how it should.
- Volume decreased at the cup's base and then increased to reach new higher lows.
4. We've nearly reached a higher low that I wrote about in my last chart.
If all of this plays out, we will be at $9900 soon. This is a very risky idea with bear's still looming in the background. A sane idea, however, never makes one any money.
If it breaks strong resistance at $7000, then this formation has failed.
1. We are oversold on the RSI and MACD.
- A solid MACD crossover in this position would be huge.
2. The handle of the formation is still in play.
- The handle, however, is long and far from the high of the cup. This means that we need a stronger breakout than usual.
3. The cup's volume performed exactly how it should.
- Volume decreased at the cup's base and then increased to reach new higher lows.
4. We've nearly reached a higher low that I wrote about in my last chart.
If all of this plays out, we will be at $9900 soon. This is a very risky idea with bear's still looming in the background. A sane idea, however, never makes one any money.
If it breaks strong resistance at $7000, then this formation has failed.
