Here is a zone with a confluence of resistance that could cause another leg down. There is previous support levels, 20EMA, trend lines. Not saying it will bounce here but as a trend trader this is hard to ignore. Also bear (see what I did there?) in mind that the current upmove is more corrective and sluggish than the high momentum impulsive moves down in this trend. To break the down trend there needs to be a strong impulsive break of the resistance zone with big green candles.
Be careful out there - I'm keeping powder dry for now.
Be careful out there - I'm keeping powder dry for now.
Comment:
Forgot to add that it is below all the MAs - 20EMA, 50 EMA, 100 SMA. A strong break above the high around 12165 or even the 1200-13000 area are more 'official' trend reversal signs but then still there is the upper trendline of the pitchfork. Even then it could just be a higher degree B wave with a C wave down to follow. If it takes off again to the downside 5000 and below is not out of the question...
Comment:
This is one of those ideas where I really hope I am wrong. This upmove is getting a bit more momentum, has now cleared the daily 20 EMA. The upper line of the resistance zone around where the previous closes of support (10650~ish) were on the way down - and the 50 EMA are the next hurdles to tackle. This upmove is not looking so corrective any more but could also do with being a bit more impulsive in nature.
We are in the middle of the resistance sell zone now so anything could happen. There was a $400M single buyer yesterday so maybe someone knows something we don't. I'm ready for a bull run - but preparing for the other scenario.
We are in the middle of the resistance sell zone now so anything could happen. There was a $400M single buyer yesterday so maybe someone knows something we don't. I'm ready for a bull run - but preparing for the other scenario.
