I think certain technical formations may exist even when price action "hides" them. Here I drew out what I thought a bearish wedge
, hidden by a rally that was rejected in nearly equal selloff. My thought is that you can somewhat disregard the rally since it was met with an equal sized selloff, creating a neutral zone of high volatility
. Then draw what appears to be an upward slanted wedge
(as if the rally never happened), which is bearish
and usually followed by a breakout down. As it turns out, the hidden wedge
predicted price action quite well. I am still bearish
and expect to test the 2000 level within a day or two.