Flashcrash or beginning of broader correction ? Looking back ...
This is an educational post.
The whole point here is looking back at history in order to better evaluate our own trading stance, keeping track of previous events.
A flashcrash such as the one we got yesterday is not uncommon.
Moreover it had plenty of technical reasons behind ( such as the breakdown of a descending triangle spanning across weeks ).
For now the drop settled in the area of FIB 0.5 retracement and MA200 / D dynamic support.
While there is indeed much room for the price for drop lower, as the target of the above triangle is way farther south, for now we cannot rule out a typical "consolidation flashcrash", like the many we historically had before, mostly within an uptrend. Here i'm painting the comparison with the August 2016 flashcrash, for instance, which shares pretty similar dynamics and actually stopped dead on the MA200 / FIb 0.5 area, before seeing price surging again.
Will this be the case ? Truth is so far we CANNOT tell.
So No hurry.
Next few 3-4 days will likely shed some further light on this.
The whole point here is looking back at history in order to better evaluate our own trading stance, keeping track of previous events.
A flashcrash such as the one we got yesterday is not uncommon.
Moreover it had plenty of technical reasons behind ( such as the breakdown of a descending triangle spanning across weeks ).
For now the drop settled in the area of FIB 0.5 retracement and MA200 / D dynamic support.
While there is indeed much room for the price for drop lower, as the target of the above triangle is way farther south, for now we cannot rule out a typical "consolidation flashcrash", like the many we historically had before, mostly within an uptrend. Here i'm painting the comparison with the August 2016 flashcrash, for instance, which shares pretty similar dynamics and actually stopped dead on the MA200 / FIb 0.5 area, before seeing price surging again.
Will this be the case ? Truth is so far we CANNOT tell.
So No hurry.
Next few 3-4 days will likely shed some further light on this.
Comment:
Ok it's not a flash crash, but a full fledged correction.
Order cancelled:
Closing this.
Floow up here:
Floow up here:
Soon we'll see the outcome.