Dow Preparing a Short Squeeze to 26000/27000
Quite the day today, what a big dump :). Earlier today i posted a message in my public channel about the indices and what we should NOT forget!
About the stock market, after the first big crash 2 weeks ago (I mentioned this before), I believed it was all selling and no real shorting. After the first bounce, short sellers have come in the market as well. The danger of that, is short squeezes. Like they did last Friday at the and of the day. So a bear market is great, but, it can be VERY mean as well. A short squeeze can come out of nowhere. If we are lucky, we get to see a wedge form on lower time frames, so one can prepare for it, to close shorts or even go long.
What I am trying to say is, even though it seems to be a slam dunk just to short the stock market, but if your leveraged (like most are in crypto), it can become your worst nightmare. So do not count your self a rich man with just one trade thinking it will simply crash in a straight line. If the bear market is real (no denying anymore i think), there will be countless opportunities to make great trades, maybe even whole year long. So do not focus on just 1 trade. Be smart, take (partial) profits when you see something. You can always get back in again
At the moment, it looks as if the market is trying to turn up. After hours we had another small dump but it went up just as fast and at the moment it continued to pump. On the left we can see a big buy candle (assuming it will hold). My guess now is, if we get to see a nice bull flag on the right, so holding 24050ish, then there is a good chance it will do another big wave. If that wave can then break 24600/700 (resistance on the left), we could see even more upside movement, creating one big short squeeze. Now it's not crypto, so don't expect any straight lines, but it could go fast though.
So ideally we see bullish movement this week, up to high 25xxx or maybe even close to 27K. That is guessing for now. So we could have a great opportunity here, but we really need to see a nice bull flag form now and hold the current levels.
Don't forget to like if you appreciate this :)
Previous analysis:
About the stock market, after the first big crash 2 weeks ago (I mentioned this before), I believed it was all selling and no real shorting. After the first bounce, short sellers have come in the market as well. The danger of that, is short squeezes. Like they did last Friday at the and of the day. So a bear market is great, but, it can be VERY mean as well. A short squeeze can come out of nowhere. If we are lucky, we get to see a wedge form on lower time frames, so one can prepare for it, to close shorts or even go long.
What I am trying to say is, even though it seems to be a slam dunk just to short the stock market, but if your leveraged (like most are in crypto), it can become your worst nightmare. So do not count your self a rich man with just one trade thinking it will simply crash in a straight line. If the bear market is real (no denying anymore i think), there will be countless opportunities to make great trades, maybe even whole year long. So do not focus on just 1 trade. Be smart, take (partial) profits when you see something. You can always get back in again
At the moment, it looks as if the market is trying to turn up. After hours we had another small dump but it went up just as fast and at the moment it continued to pump. On the left we can see a big buy candle (assuming it will hold). My guess now is, if we get to see a nice bull flag on the right, so holding 24050ish, then there is a good chance it will do another big wave. If that wave can then break 24600/700 (resistance on the left), we could see even more upside movement, creating one big short squeeze. Now it's not crypto, so don't expect any straight lines, but it could go fast though.
So ideally we see bullish movement this week, up to high 25xxx or maybe even close to 27K. That is guessing for now. So we could have a great opportunity here, but we really need to see a nice bull flag form now and hold the current levels.
Don't forget to like if you appreciate this :)
Previous analysis:
Comment:
Looked VERY good for a while, where 24600ish was holding and price bounced a bit, but it broke and it just dumped BIG TIME. Now we are almost back at yesterday's low, as long as we see a higher low, it could be this is just an ABC correction. If the low breaks, then it;s game over i think, anything can happen then.
So i am still bullish short term, still giving it a good chance markets might rally before we get another huge drop. Short term, good chance it might drop back down towards the 24600. Hope that the max, since that is also a neckline, that would make it easy to stay bullish.