This is the ultimate chart to watch. Opposed to the regular market we have formed a perfect bear flag on the CME futures chart. We have had multiple picture perfect tests on our red line of resistance and multiple picture perfect tests on our green line of support. Right now our resistance is between $21,400-21,800. One of two scenarios will play out from here.
The first scenario (less likely in my opinion) is we reach that resistance, end up closing above it and hold it as support. This would give us a breakout target around the $30k level.
The second scenario (more likely since this is a very bearish pattern) is we may reach our resistance first, but if we fall and close a daily candle below the $18.5k level on CME then our bear flag breakdown would be in play. This bear flag has a crazy target around $7k.
Please watch this chart when around either support or resistance to see where we close.
The first scenario (less likely in my opinion) is we reach that resistance, end up closing above it and hold it as support. This would give us a breakout target around the $30k level.
The second scenario (more likely since this is a very bearish pattern) is we may reach our resistance first, but if we fall and close a daily candle below the $18.5k level on CME then our bear flag breakdown would be in play. This bear flag has a crazy target around $7k.
Please watch this chart when around either support or resistance to see where we close.