Let's look at the Dutch AEX index. The prices seem to not have recovered as much as the american stock markets, giving us more opportunity to trade with higher percentage gains. However, I am starting this one with my analysis on an upcoming short trade.
I'm not a huge fan of this inverted fibonacci retracement, but saw it getting very popular on charts recently to model the big Corona drop. If we use this charting method, we do see the price struggled quite a bit to overcome the 0.5 fib level.
After oscillating quite a bit in this rising wedge, we are reaching the point where the price will need to make a decision soon.
A rising wedge is a bearish pattern, so I expect a bearish breakout after reaching still slightly higher. possibly around the 525 level.
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- Trading Guru
-------------------------------------------------------------- Disclaimer! This post does not provide financial advice. It is for educational purposes only!