Now. What we want to see hold is five thousand seven hundred dollars. You can see this area right here. What we've been doing since we had our climax dumped to the downside we have been putting in these higher lows, so we want that to continue and what you see is we've had this little symmetrical triangle drawn and we actually broke to the upside of that and That was enough to drive us all the way up to around that seven thousand dollar area. Now, in terms of support like I was talking about, we want to stay right up above this 5700 area, but in terms of resistance we need to get up above. We will call it sixty eight hundred dollars, that's going to be a key area for so what we're gon na look at is to see if we bounce and chop back into here or if we're able to finally break through today, that's sixty eight hundred dollars and Turn it into support that's, what's gon na be so important for us, and a lot of people don't realize that whenever you break through a resistance, you want it to become support, that's, so important guys. You want to see that face. You want to see that buying pressure come in now what we're, seeing today we do have a nice little stick of volume coming in here, but we do have some profit taking, as you can see up here, right in this range, so guys started taking profits right Around that 6700 area and us being down now about five hundred dollars, that is significant and what that is, is short term traders taking their profit at this resistance level, so that's, definitely something we're gon na pay attention to another thing.
I want to look at we're gon na extend this trend line out now. So what you're going to see here, we're going to go to right there and we're gon na have three touches on this now. So this is gon na, be a valid trend line that we will not want to start breaking down through, in my opinion, guys – and what I also like, though, is the fact that we got this bounce or this higher low off this previous resistance right. So we broke up through, as you can see here, we came back down. We found resistance there or found support there, but that was also off that for out for our 50 moving average, which was important area for us to defend, we've been trading up above it since about March 19th, and we want to continue to stay up above that. On the 4 hour and keep making these moves of these higher lows that what's so important guys the higher highs they can be choppy. But in terms of watching for that trend, you want these higher lows to continue on that's, going to be extremely important for so that's on the four hour time frame. What I wanted to do is actually zoom in a little bit more next and go to the one hour time frame and don't forget guys smash that, like button subscribe, hit that notification bell. If you get some from this channel, like I said guys, I'm, not the Guru here, I don't have a crystal ball for you, but I go off.
Technicals technicals have worked very well for me in terms of trading, and I want to share that with you all the best that I can so what we're seeing here on the one hour time frame now is we're up above this 50 moving average. On the one hour, time frame and we're up above this 200, so that is important that we continue to hold them as support. We don't want to start dropping back below that. You can see this long wick here so that's where the profit was being taken and now what we have to see. It also came on heavier volume as well, so it's, basically almost like a long leg, doji candle on heavier volume. So that could be a sign of a little bit more of a sell off what I would like to see hold here on the 1 hour time frame. If I was trading it, we need that 52 hold and that's gon na be at 6100 dollars. We really wouldn't want to start dropping back below that. If we do, then that 50 can start acting as overhead resistance. You can see several times where we whipped up to it there and we definitely don't want that, but we are having some big volume in terms of that sell off with that doji there we have big volume coming to the upside, and then we have big volume Back to the downside there, so we're really gon na have to watch these candles if it's, just gon na be a slight pullback set a high or low and then make that next move to try to get up and through 6800.
I think that's going to be critical for us and then I want to take a little bit longer view for us and go out to the 1 day time frame and what you can see here are all these wicks, so that's profit. Taking that short term traders like we've, talked about right up in this area and that's an important area, because this is where, before we ended up putting in that inverse Head, amp Shoulders pattern right there. So now that area is acting as resistance, since we broke down through it and that's how these things work. Guys I'm telling you, when you learn this stuff and you study it it's gon na make so much more sense, because all this price action is driven off. Other traders, looking at these things, okay, just like how, off the one day a lot of the times you'll, find support off that 50 moving average or you'll find resistance off, depending if you're, in an uptrend or downtrend, but it's, because guys like me or actually bigger Traders obviously, but guys like me, who understand some technical analysis they're. Looking at these charts and they're saying: okay: I'm, seeing a bullish, candlestick reversal pattern with a high or low off the 50 and an uptrend I'm gon na go long there and that's. Why you see that, and vice versa, okay, we're getting a death cross coming to the downside, now that's, something that we have to pay attention to, because they can be significant.
You know sometimes guys when you just move sideways and you're having these 50s and the 200s cross back and forth it's, not as significant is when they're actually starting to point down and you're starting to get that downward pressure or when you're starting to get that upwards. Press or depending on which way you're looking at the trend or what's going on in the chart, but it's so important to pay attention to these technicals. Another technical I wanted to look at here, along with this trend line, guys really pay close attention to that trend line. I want to look at our Fibonacci so a lot of times after we have a massive fall. We will actually get a bounce back to that 0.618. So if we take it all the way down here, you can see up to that 0.68. We basically whipped up to it. There we got through the 0.5 with a wick, but we have not had a real body candle close up above that so that's a significant area guys just like we talked about. We want to hold this 0.382 as support, and we want to try to get back up to that 0.618, which is going to be around that 7000. 184. So that's really important for us to get up above that 6800 close up above that hold that and then make the next move. But it is a tough area that we're in right now – and this is definitely an area that I believe you should be extremely cautious.
With capital preservation is everything in this market. It truly is guys so that's the main thing I'm, all about playing positions in this trading in and out getting in and out, but you also have to protect that capital because, as we know, a lot of people can't go to work and different things right now. Our state that I'm in right now is actually in somewhat of a lockdown they're, basically saying besides groceries, and you know going to the doctor things like that: we're not supposed to be going out of our homes and everything because the outbreaks so bad here and that's. You you know well, we got to deal with, but with capital preservation. You'Re gon na have to buy groceries. You'Re gon na have to you know, do all these things that you that you've done before and some people now don't have the resources coming in so that's, where it's a little bit more troublesome in terms of you know just buying something and holding on right now, Because a lot of people need that capital and it's important, that we have capital so that we can buy food so that we can keep our lights on so that we can have our internet running that type of stuff. So that can definitely influence the buying pressures. In the market and that's, something that we definitely have to take into consideration, guys that's something that I definitely wanted to point out to you there now, in terms of the one day we're going to get into the indicators here, I'll move this sideways and let's.
Take a look at our relative strength index, so our RS size of 42, so that's good, you can see we're putting in some higher lows here, pointing up so today's candle close is going to be important for us I'd like to see us close up above where We closed yesterday and we close yesterday around 5700. We call 5800, so it'd be nice to see us close up above that and then continue. This move to try to get over that 6800 that's going to be important for us, so we'll get that off. There then we'll take a look at our stock RSI stock RSI is getting a little bit overextended here, we're at 95 and 89, but this is something with the stock where you can really stay for a long time pegged out to the upside or the downside. You can see this downside action. It went from February 17th all the way till about March 3rd, that we're in that oversold territory. So the stock you have to realize that it can really stay pegged out in either direction for quite a long time. We'Ll take a look at the MACD here: MACD we did get a bullish, MACD cross there, so that's something that's important for us and that would come around the higher low. So maybe that'll be enough to start giving us that nice move to the upside. That could be important, take a look there and then we'll go to our awesome oscillator as well, and you can see that histograms starting to tick to the positive as well.
So we need that to continue to keep moving guys, but you know that's the main thing that I want to point to today. I just wanted to work through the timeframes go into that four hour go into the 1 hour and also look at the 1 day time frame right now, but I believe our biggest is to get up above that's 6800 if we can close up above 6800 that's. What we're gon na be looking for and then we want to turn that into support, so let me know down low guys. I appreciate you all being here with me today. God bless each and every one of you be safe out.