- The market has been registering higher highs and lows since mid-February ; The mid-term trend is bullish
- Over the past couple of weeks, and with the establishment of a new all-time high, prices have naturally consolidated inside a bearish wedge.
This consolidation led the market back below the $2,300 zone where buyers seemed to be powerful and numerous enough to prevent prices from dipping lower.
Meanwhile, both short-term moving averages are on the verge of registering a bullish cross while the RSI indicator already broke-out its bearish trendline, inside the buying zone.
- This is a bullish situation, even if the market is still consolidating.
The bearish wedge is a reliable chart pattern that plays a continuation model when placed inside a bullish trend. The fact that this pattern occurred right after a new all-time high can be seen as a normal situation because investors can be tempted to take some profits out, usually causing a pull-back.
This is what happens here.
In addition, the limited range of the pull-back associated with the bullish signals sent by the moving averages and RSI allow us to forecast a bullish trend resurgence.
A bullish break-out of this bearish wedge would unlock a new bullish potential towards $2,420, $2,455, $2,500 and $2,563 by extention.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
- Over the past couple of weeks, and with the establishment of a new all-time high, prices have naturally consolidated inside a bearish wedge.
This consolidation led the market back below the $2,300 zone where buyers seemed to be powerful and numerous enough to prevent prices from dipping lower.
Meanwhile, both short-term moving averages are on the verge of registering a bullish cross while the RSI indicator already broke-out its bearish trendline, inside the buying zone.
- This is a bullish situation, even if the market is still consolidating.
The bearish wedge is a reliable chart pattern that plays a continuation model when placed inside a bullish trend. The fact that this pattern occurred right after a new all-time high can be seen as a normal situation because investors can be tempted to take some profits out, usually causing a pull-back.
This is what happens here.
In addition, the limited range of the pull-back associated with the bullish signals sent by the moving averages and RSI allow us to forecast a bullish trend resurgence.
A bullish break-out of this bearish wedge would unlock a new bullish potential towards $2,420, $2,455, $2,500 and $2,563 by extention.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.