Turned out to be a miserable trade idea... Last nights headline from the SEC during the US session about corporate shareholders dumping billions worth of their own companies shares undoubtedly didn't help. General outlook now is sell rallies.
It bounced from resistance so many times before I guess the structure couldn't support price. With the ECB disappointment the 'story' for European stocks has lost its positive narrative. I think the DAX is headed to the 100WMA. There was another headline where the German ECB governor Weidman, a famous hawk, said no further easing was required nailing the coffin. Structurally the S&P is looking weak too and stocks in general are now looking for cues from China and commodity weakness. On the daily chart i'm a seller below the 50DMA. Just sold a small position but price bounced. But I'm scaling in small shorts. On the hourly it should stay below the 10SMA and 200 on the 4hr for the bearish view to prevail during the European session.
Hmmm, I was exactly in the same trade 'cause of my own analysis told me the same thing.... but I didn't knew the news.... Therefore I amuse that despite structures there is more probability to further drop down right ?