Here we go again. Another failed rally it appears. Bears had full control and continued the lower lows pattern we have been in since our high of the short lived rally that got us to $4415 at end of November. We saw the drop to $3212 yesterday and an extremely quick bounce of about 10% to $3550. This range for yesterday leads me to expect an inside bar to form today on the Daily chart and a possible break tomorrow or Monday.
The bounce while it was significant for anyone trading it provided they took their profits was again just another turn up towards 4 hour 12 EMA resistance and then knocked back down. Daily EMA resistance is still a ways above with the 12 EMA on daily sitting in the $3700's as I type this. This EMA line will continue to drop and eventually also meet up with price action and likely again be resistance. Would love bulls to get a bounce up towards the EMA daily resistance but they need to get above 4 hour EMA first. Staying patient and protective and even the strong bounces have not changed our trend. Currently $3212 is the support and $3550 the resistance after yesterdays volatility.
Just My 2 Sats!
