Yesterday I was watching from the sidelines as the price brokedown through $8,200 support and appeared to be confirming a second bear flag. From there I expected us to fall down to the green dotted bull trend line at $7,150 - $7,250.
As it turned out we found some support at $8,000 - which has given us a bounce for an $8,200 retest. From here there are two big unanswered questions:
1. Will $8,200 turn into resistance? (white line)
2. Can we break through the 14 day downtrend (red dotted line)
I need to see the price back above $8,200 and outside of the downtrend before I will feel comfortable opening a long. If we fail at either of those points then it will be back to my original plan of waiting for $7,150 - $7,250.
Until then I will be sharpening my tools on the sidelines.
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