SimpleCryptoLife

Let's short a bank [BK, Bank of New York Mellon Corp]

Short
NYSE:BK   The Bank of New York Mellon Corporation
This idea is probably premature, and based on my fundamental bias that the market in general, and banks in particular, are based on fake money and debt and will roll over soon.
As a reason against this thesis, the fundamental news for this particular bank seems to be good, with hedge funds reported to be bullish on it.
So I will trade this, but with a very small exposure in case the market continues to be irrational.
Let's see what technical reasons there might be to be short.

This chart caught my eye because out of the banks on my watchlist, it has the most pronounced red trend on the 4H chart. So, strike one.
On the daily chart, you can see that the 21D EMA is starting to roll over, and unless it bounces hard right here, it will have a bearish 8/21 EMA cross confirmed by the end of today. Strike two.
On both the daily and 4H charts, price is now underneath all EMAs and all EMAs are downsloping. Very bearish. Strike 3.
Additionally, I've drawn some trend lines on, and you can see it's broken them all downwards one after another. This isn't an exact science, just a crude way to illustrate how the trend is curving downwards. Most assets are doing some version of this, usually breaking triangles down, but on this chart it's a bit clearer.

Of course, horizontals > diagonals. Here we can see that it's resting on what looks like a 4H support zone (in green).

So rather than shorting support, a prudent trade plan might be to wait for this to break and then short a retest, with a tight stop above the support zone or a safer stop above the bunch of 4H EMAs, coinciding with the last diagonal trend line.

Trade safe everyone!

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Disclaimer: I know nothing and it's not my fault.
Indicators used: standard Moving Average 200; Moving Average Exponential 200, 21, 8; Price Action Trend Overlay | Simple

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