Remember, price follows liquidation and that’s what’s happening to late shorters now, unlike me – the early shorter at 40k :) They are getting squeezed because they sold at support in a red candle. So always sell on a green candle when everyone is at the top!
Right now the first resistance above sits at historically strong weekly level 34.678 and the support below at February Low 32.328
And the game is about the monthly close.
If these happen to be true, then the re-distribution may get invalidated.
While i don’t think these will happen, it still can happen and i can’t control this. But i have an action plan based on these targets and that’s what matters.
Apart from the targets, you want to look at the relationship between UTAD (Upthrust after distribution) in April and LPSY (Last Point Of Supply) in May. Everybody turned by the end of April and thought we were going to 100k. In reality, this was the LPSY in the overbought condition before the huge markdown.
Now look at the UTAD in June. The same LPSY could be in the making before going down to 20k’s if not lower.
I took the UTAD levels as the touching points of the down trend channel (blue zone) and extended up to LPSY for the overbought area (gray zone). That is why i’m not turning unless the price gets above the gray zone and it’s a moving target.
PS. We got a reversal bar on the P&f chart as well. I’ll send an update from that post.