Descending triangle with the support at the 0.5 retracement lvl

In our last update of "Take partial profits because this is not the rally to the moon" we told you that shorting the breakdown of the pennant won't be a great idea because 0.5 could offer support and this is exactly what happened. We had a nice breakdown with HUGE volume but the bears got exhausted quickly (maybe because there were a lot of bulls waiting for their orders to get filled).

Now..how do we trade this? there are a few things we need to take in consideration before opening any trade:
1. Shorts are almost at ATH and we could see a short squeeze like in April
2. The descending triangle has a higher chance of breaking down and if this happens shorts will most likely create a new ATH and if it's a fake breakdown the SL-s for these shorts could be used as fuel for starting a small bull run like in April
3. Incoming SEC decision regarding ProShares ETF

If the triangle breaks up we will not take any trade until the decision is announced.
If the triangle breaks down before the decision is announced we will short but with very low leverage and SL at 6330.

Now what if that huge spike in volume had nothing to do with TA and it was based only on FA. What if the decision leaked...

Comment:

So, we had breakup and squeeze. No trade until announcement. We are still bearish.