Let the bullets fly a little longer!

22 мая 2023 г.

From mid-May, the market entered a volatile cycle, and from the 4-hour cycle, it showed a phenomenon of frequent changes of hands between long and short. In just a dozen trading days, the bulls and bears exchanged control at least 8 times, and most of the volatility range was only $1,000.
At present, a convergent trend has been formed, it should be said that the market is about to choose the direction, so now, we must be more patient and more cautious to deal with. Let the bullets fly a little longer!

In addition, we can see a head and shoulders pattern from the daily chart, of course, this pattern is somewhat complicated, we can think of it as a composite head, and the right shoulder should be being built at the moment.
As for whether this head and shoulders can be formed, the key is to see whether the upward will break through the left shoulder high, that is, $29380, if it cannot break through this high, but to the fall below the previous neckline - $25270, then the head and shoulders will be established.

At present, the finishing of this right shoulder, the main pressure is on the MA50, this moving average is around $28340, is turning down, for the bulls, it is certainly not good news. And the support below, the first thing to look at is $25270. If it falls below this trend line, the rally may be aborted.

Therefore, the current situation is very chaotic, it should be said that there are opportunities for long and short, but no one has an absolute advantage. Therefore, speculators should not stand in line too early, and at the moment of breakthrough, making the right choice is the strategy we should have.