Ever since we confirmed the last bear flag breakout the price action was sent down and has tested the 50MA multiple times on the last couple candles....but has only wicked below it maintaining very strong support....however as you can see the projected drop target from the bear flag breakout has not yet been met....what's more we are now essentially forming another bear flag with the bottom trendline of the new bear flag being the 50MA(buy/sell line) It's very possible the 50MA may hold support and prevent us from further downside but the probability is higher that we will dip below it and drop to whatever the projected price drop target of the current bear flag before we completely rebound...possibly leading toe ven more downside....best to play it safe and see how this currently developing bear flag plays out though before making any big decisions....however there seems to be a lot of FUD in the news headlines these days which often gives you a heads up more downside is on the way as well as an impending death cross of the 50MA and 200MA on the day chart in the net few coming days...bot indicitave of more downside...probability favors a continued drop...but at least for now due to the strong support of the 50MA this idea will remain neutral....it will also remain not financial advice....thanks for reading.
Comment:
if we do break the currently developing bearish flag on the bearish side, the projected price drop target will be right around $8080
Comment:
We have finally dipped under the 50MA and thus far it's not making much effort to try to get back above it...it hasn't even really tested it as resistance yet....not really a good sign... also the initial target from when we broke under the bull flag of $8291 has been reached. We will have to wait and see if when we eventally go back up and rettest the 50MA whether or not it will act as resistance or support
Comment:
it took quite awhile once we went up to retest the 50MA again, but we are now finally back above it...on the retest it couldn't get above it for awhile but it didn't bounce back down off of it either....so now that it is above it again we wait and see on the retest whether it acts more like support or resistance. Since we've gone past it on 2 different candles now, breaking that support usually weakens it as support in the future.
Comment:
We re now testing the t line which is acting as pretty strong resistance.
Comment:
the bulls seem to have woken up this morning with a wild hair up their ass...maybe from hearing Yahoo has decided to get into the exchange market in Japan this year....who knows but they are now trying with all their might to surmount the t line.
Comment:
current resistance seems to be the top of the previous bullflag...indicating there may be a chance that flag is still valid...even witht he multiple confirmationc andles we got below it. Every now and then exceptions to the rule like that do occur. That's one of the rules of TA actually...that there is exceptions to every rule.
Comment:
I'm now seeing a much larger descending triangle/possible much larger bull flag formation that we may have just broken up out of after going above the tline..I will include in my pcoming idea and it will mark it with hot pink trendlines to easily be able to see amongst all the other lines.