The long-term trend is still up. But the short-term trend is likely going to be down. Looking at this bull setup, a reasonable target is the 1×2 Gann angle at ~ 940. Let’s look at a bear setup from the swing high of $1050 (Kraken):
However, while we were issued a sell signal at the touching of the 5th arc at $1050, we have not had another sell signal since then. When/if we see a close below the 1st arc (blue) and/or a close below the 1st square ($1002), we will have another sell signal.
Conversely, when/if price gets through the 5th arc on the bull setup (labelled), we will have a buy signal.
As I continue to believe that a 3rd wave of the correction that began Jan 4th must complete before the next leg of the great rally of 2017 can begin in earnest, I harbor a suspicion that prices will get to the lower end of the range before a buy signal is generated.
However, I am not one to argue with the markets. If price clears the 5th arc pair shown above, and a buy signal is generated sooner rather than later, I will happily give up my bearish thinking…
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
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