Weekly ES, A Lesson in Trend Lines, and RSI Divergence OH MY!
This chart shows wonderfully how major lines of support become resistance over time.
I have color coded this chart for ease. I suggest following each line and seeing how it acts as support, before is broken and subsequently acts as resistance. You can see the vast amount of resistance that is cluttered ahead.
You may notice this is the weekly time frame, and that I tend to analyze the larger timeframes (monthly, weekly, daily). The reason for this is because it is best to start big and then work your way down, otherwise you risk misunderstanding what is truly happening. It is difficult to admire a painting when it is 1 inch away from your face. You have to step back to see the entire picture.
The RSI divergence is also marked and can be compared with prior recessions by using the link below. (sorry haven't figured out how to add pictures like others yet).
www.tradingview.com/chart/rAaKFgq2/
To summarize I believe a correction is coming soon, but the "true" top and subsequent real drop, may not arrive until September.
As always this is not financial advice and I am not your financial advisor.
Stay safe and trade smart.
S+S
TTT
I have color coded this chart for ease. I suggest following each line and seeing how it acts as support, before is broken and subsequently acts as resistance. You can see the vast amount of resistance that is cluttered ahead.
You may notice this is the weekly time frame, and that I tend to analyze the larger timeframes (monthly, weekly, daily). The reason for this is because it is best to start big and then work your way down, otherwise you risk misunderstanding what is truly happening. It is difficult to admire a painting when it is 1 inch away from your face. You have to step back to see the entire picture.
The RSI divergence is also marked and can be compared with prior recessions by using the link below. (sorry haven't figured out how to add pictures like others yet).
www.tradingview.com/chart/rAaKFgq2/
To summarize I believe a correction is coming soon, but the "true" top and subsequent real drop, may not arrive until September.
As always this is not financial advice and I am not your financial advisor.
Stay safe and trade smart.
S+S
TTT
Comment:
Breaking through all the support. This could get really ugly really fast
Comment:
Made some adjustments using hind sight to "line 3 possible support". Just playing with some possible scenarios in my head. Feel free to give your opinion
Made some adjustments using hind sight to "line 3 possible support". Just playing with some possible scenarios in my head. Feel free to give your opinion
Here is the RSI comparison picture I intended to link.