We have confirmed these major inner trend-lines as support and they should at least produce a bounce because of their historical significance. The market is still quite bearish so I wouldn't recommend holding for too long, just like in the bull cycle you wouldn't want to be out of the market for too long. I decided to buy in here because of the strong support lines and the triangle formation that could easily ensue. This analysis is only for the short term trader (swing/day). I am not sure when this overall market is going to turn around, just that I personally like to enter at different points of support to see if they are the turning point or not. Our RSI is nearing the oversold area which mean that we could see a balancing in the forming of buying which isn't here yet but also not too far away.
This chart represents my prediction.
For if/then statements:
-If we break this support, look to next support around 7200
-If we break that support, look to the outer support trend line in light blue, 4500 area
-If we break the light blue outer resistance line above us then I would be buying with market orders
Current Price: 7888
Stop: 7680
Target: 8500
Risk/Reward: about 3:1
*Disclaimer- We are in a very bearish market with a lot of FUD, be sure to watch this closely for any breaks down. Consider leveled stops.
This chart represents my prediction.
For if/then statements:
-If we break this support, look to next support around 7200
-If we break that support, look to the outer support trend line in light blue, 4500 area
-If we break the light blue outer resistance line above us then I would be buying with market orders
Current Price: 7888
Stop: 7680
Target: 8500
Risk/Reward: about 3:1
*Disclaimer- We are in a very bearish market with a lot of FUD, be sure to watch this closely for any breaks down. Consider leveled stops.