I have adjusted my trend lines
and the price action seems to forming a more classic "Pennant" style formation. I still think we are in good shape although there is always risk to the downside but the action has moved along sideways for three waves and so we would no longer be looking at a double bottom
formation. This is different. Not a rising bearish wedge
, not a bullish falling wedge
... This seems to be something more neutral and it really depends on the movements controlling these averages as many traders are watching to see if the 20 and 50 can remain above the 200.
Any cross of the 50 down through the 200 will trigger a sell off and take us down potentially to retest the low and possibly down to the next support level
at 8400 or whatever.
But for now my outlook is still positive and until we have a confirmation it would seem like the bulls and bears are locked in a dance... Let's hope the bulls are better dancers...