What looked high risk trade seems now relatively safe trade. Yesterday, we did not have strong conviction when we called the bearish
trade due to several reasons. Today, the price action confirmed our short term bias. CCI: the price is relatively far from its 20-bar average price. The Commodity Channel Index
) measures the deviation of the price from its average value (comparing to a chosen moving average, typically 20 bars). The oscillator is normalized by dividing by the typical deviation, so we get an oscillator fluctuating roughly between +100 and -100. Its too early to tell if this weakness or price reversal will materialize as gap fill process but as u see we need volume
to increase probably over 50M shares to believe the reversal. Another bearish
candle also seems formed today ( Inside bar
). This type of bearish
formation only is seen during a strong uptrend. When the trading range is completely within the boundaries of the prior bar. This suggests the balance between buyers and sellers is becoming more evenly balanced. Today's small gap down was not usual but very violent but buyers showed up the first 3 minutes..u will see this if u use 3m
chart, but almost most of the day, institutions were selling in small lots but retailers and new investors were not strong enough so we did not see a violent exit due to market situation. If market sells at any given time, expect a serious drop towards pre-earning price levels. If you like follow us and stay safe and tuned more to come.