Hi there everyone..
Here is another good setup formed. After yesterday's huge sell candle (with a very nice volume spike I must say) today the market picked up and recover all those losses at the end of the week. Now I have to tell you markets are very much confused with the direction as I can see due to the mix data prints and FEDs keeping relatively hawkish stand. Yet covid story has not ended and I believe even the FED members are not fully confident with tapering .
So here is the plan: that big volume spike could be interpreted as smart money is more on the sell side of the story. In daily chart you can see we are way out of median (200 EMA in this case). I believe the week starts off clearing some orders on top and then move strongly towards down side.
First target is probably more likely to occur and second target has a great chance too. So I am highly short biased. Market is over extended and need a correction before any continuation of the uptrend. However those two levels should be watched carefully in case of stronger hawkish speeches may bring stronger sell .
I am sorry if the chart seem messy. But thats how I got used to it and how it comes out . Hope it helps you all..
Stay green and have a nice weekend.
Here is another good setup formed. After yesterday's huge sell candle (with a very nice volume spike I must say) today the market picked up and recover all those losses at the end of the week. Now I have to tell you markets are very much confused with the direction as I can see due to the mix data prints and FEDs keeping relatively hawkish stand. Yet covid story has not ended and I believe even the FED members are not fully confident with tapering .
So here is the plan: that big volume spike could be interpreted as smart money is more on the sell side of the story. In daily chart you can see we are way out of median (200 EMA in this case). I believe the week starts off clearing some orders on top and then move strongly towards down side.
First target is probably more likely to occur and second target has a great chance too. So I am highly short biased. Market is over extended and need a correction before any continuation of the uptrend. However those two levels should be watched carefully in case of stronger hawkish speeches may bring stronger sell .
I am sorry if the chart seem messy. But thats how I got used to it and how it comes out . Hope it helps you all..
Stay green and have a nice weekend.