Hi everyone, the bulls are still in control, the scenario of "sell in may" has not been manifested by the MA50 that managed to absorb 2x the decrease (see green arrows). On the other hand, the bulls no longer have any strength to push upwards, this can be seen from the horizontal resistance line in the RSI
. So it is a sideways course that can take a while. I only expect further major declines if the MA50 can be broken in the daily chart
. There is also a wedge
showing an outbreak imminent. This indicates a further decline where it is important to break that MA50.
Should the resistance line at the top be broken anyway, the open gap of around 548 can be closed and an eventual overshoot to 560. We have to wait for the outbreak before we can further determine the direction.
In a sideways market it is difficult to trade with short positions, make sure that the stoploss is high enough for the longer term or wait for the MA50 to break before we can speak of a downward trend.
Good luck traders!
Follow this idea, I regularly post updates based on the hourly chart.