Stripping away all patterns, oscillators and diagonals this is what I'm paying attention to. They all line up to either psychological resistance or S/R levels defined by previous price action.
Bullish scenario: Triple bottom and reversal. Which is supported by the defining features of a triple bottom:
Spaced apart
Roughly equal lows
Volume declining
Nothing unreasonable there.
Bearish scenario: More downside and consolidation similar to the previous time we were at this low. This dump saw little to no positive price reaction from bulls.
Longs still outnumber shorts considerably, and I believe we'll see a strong reaction when that changes.
Overall I'm not playing this. But I've put longs in place at support levels.
Bullish scenario: Triple bottom and reversal. Which is supported by the defining features of a triple bottom:
Spaced apart
Roughly equal lows
Volume declining
Nothing unreasonable there.
Bearish scenario: More downside and consolidation similar to the previous time we were at this low. This dump saw little to no positive price reaction from bulls.
Longs still outnumber shorts considerably, and I believe we'll see a strong reaction when that changes.
Overall I'm not playing this. But I've put longs in place at support levels.
Comment:
6 will not hold.
5.5 is the next line down. Should coincide with shorts overpowering longs for a face melting pump.