The combined US indexes had spiked as expected, and hit the upside target. This came with good technical indicator support. But the caveat is that the candlestick looks like a dark cloud cover pattern. In this type of pattern, a gap up is reversed and a close is below the halfway mark of the previous candle body. This is exactly what happened so once can expect the outcome of a Dark Cloud Cover to follow, where there is a reversal. Furthermore, the target upside is also the channel Fibonacci 1.62 target.

Therefore, although the MACD and VolDiv appear supportive, it is likely due for a retracement. New support resistances are put in...

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.