Internal trend momentum is switching to the bulls as the Average Directional Index (ADX) starts to flatten out and turn around inside a strength building zone on the oscillator. Also, the green positive directional index line has crossed up through the red negative directional index line and is back turning higher to start the week. This is a bull signal for buying interest to keep coming on dips in the market.
Sentiment is changing!!!
The other signals I was waiting for have come to fruition. The bullish divergence between price and the Relative Strength Index (RSI). Also, the RSI jumped out of oversold conditions (on increased internal trend momentum for the bulls).
Look for a price move to the 50% to 61.8% Fibonacci zone marked on the chart. This is where sellers are likely to be found, but a move this high would take the RSI up into a new bullish zone (see line I want to see crossed). This would make the $3900 to $4000 level support and a bottom for a wave 2 to them crank a wave 3 right past the 61.8% level on the next leg up. A move the the 61.8% level would help solidify the $3215 bottom.
Happy trading and have a great holiday!
Sentiment is changing!!!
The other signals I was waiting for have come to fruition. The bullish divergence between price and the Relative Strength Index (RSI). Also, the RSI jumped out of oversold conditions (on increased internal trend momentum for the bulls).
Look for a price move to the 50% to 61.8% Fibonacci zone marked on the chart. This is where sellers are likely to be found, but a move this high would take the RSI up into a new bullish zone (see line I want to see crossed). This would make the $3900 to $4000 level support and a bottom for a wave 2 to them crank a wave 3 right past the 61.8% level on the next leg up. A move the the 61.8% level would help solidify the $3215 bottom.
Happy trading and have a great holiday!