Currently we are still in the descending ; which is technically - however looking at the slightly larger picture we are forming a which will take us to the bottom of our . We still don't yet know exactly where we will land; however it will likely be somewhere in the blue area (or just on top) based on the height of the pattern. From there we range for a couple days or so before finally deciding whether we are bear to the bottom or bull for the .
Which will it be - bear or bull? Well the itself is 90% of the time. We also have the descending which suggests once we hit the bottom we can break out and will make our way back up to the top of the triangle again. This view gives the side the edge; and would likely result in the scenario.
From a perspective; we have the much larger diamond top reversal scenario; however given the now slightly more aspect of this - we can still get the double tap of the red strong resistance dotted line AND have a at the same time (dependant on how slow the pattern plays out).
Again; if we do fall through the bottom support of the blue triangle, it is likely we will see a retest and come back into the triangle briefly; which would be the opportunity to short for those who are not short from the top of the pattern already.
How to trade? I am still short from 11,077 and stops have been moved into profit at 10,777. As we move down; I will continue to move my stop down as well but keep it atleast $200 above the current price to avoid any wicks back up. I am using indicators as a guide, as well as the descending pattern. Once we confirm the bottom I will close a percentage of shorts and let the rest ride in the instance we fall through. At the same time I will also open some longs with a stop loss below the pivotal .
Current view - 65% will Occur / 35% drop through key support
Between 9580 to 9460 is where I am targeting longs. Stops in profit moved slightly higher to 10,335 to prevent being stopped out on a wick to the 100MA/200MA.