Long scenario- Possible move back up to long term downtrend line
The capitulation low of $150 at the beginning of the year likely took with it a lot of the weaker hands that were still left in the market.
With the market now consisting of mostly stronger hands, the price movement up from over sold conditions and positive news at the beginning of the year could lead to a considerable short squeeze on highly leveraged speculative shorts, that helped take us down to the $150 area.
If we see a upside break of the existing triangle, off the blue dotted (1 year down trend support line), a move to $300 and a breaking of this resistance level could lead to a re-test of the long term down trend resistance line.
If this plays out expect considerable selling in the $320-360 area which could lead to a 61.8% fib retracement.
With the market now consisting of mostly stronger hands, the price movement up from over sold conditions and positive news at the beginning of the year could lead to a considerable short squeeze on highly leveraged speculative shorts, that helped take us down to the $150 area.
If we see a upside break of the existing triangle, off the blue dotted (1 year down trend support line), a move to $300 and a breaking of this resistance level could lead to a re-test of the long term down trend resistance line.
If this plays out expect considerable selling in the $320-360 area which could lead to a 61.8% fib retracement.