Hello.Genarally In a decline stage its gonna happen to possible moves:
1)We will enter the accumulation stage or
2)The decline stage will keep going untill the market 'catch' the right demand zone(or support line,its the same)
In my opinion the decline stage will continue because:
A)We had a support of the price for 2 months at the level of 38.2%(fibo) but the price has been in a channel with a low declination to downtrend all the time.
B)Lets look at the RSI because this indicator tell us a very important information.As you have mention it i have draw 2 green parallel lines(inside the chart of RSI),as a result i have create a channel.This channel show the move of the RSI while the market was in uptrend.Also i have the red ones which have been made from a previous decline stage of the market(if you scroll backroll you will se the decline stage) which shows the channel where the market(generally) is in downtrend.If we see the RSI now is on the low limit of the green channel with the declination to go lower(its gonna catch the low limit of red channel).
3)Lets look at the volume.For 2 months we had volumes near of the MA(Volume) but the last volume was a suddenly pick which is decipted as a decline in the price.Maybe this spot will make a little panic and fear to all those buyers which have open a position in the last two months and they will try to save their moneys.
Thanks and good trades.
1)We will enter the accumulation stage or
2)The decline stage will keep going untill the market 'catch' the right demand zone(or support line,its the same)
In my opinion the decline stage will continue because:
A)We had a support of the price for 2 months at the level of 38.2%(fibo) but the price has been in a channel with a low declination to downtrend all the time.
B)Lets look at the RSI because this indicator tell us a very important information.As you have mention it i have draw 2 green parallel lines(inside the chart of RSI),as a result i have create a channel.This channel show the move of the RSI while the market was in uptrend.Also i have the red ones which have been made from a previous decline stage of the market(if you scroll backroll you will se the decline stage) which shows the channel where the market(generally) is in downtrend.If we see the RSI now is on the low limit of the green channel with the declination to go lower(its gonna catch the low limit of red channel).
3)Lets look at the volume.For 2 months we had volumes near of the MA(Volume) but the last volume was a suddenly pick which is decipted as a decline in the price.Maybe this spot will make a little panic and fear to all those buyers which have open a position in the last two months and they will try to save their moneys.
Thanks and good trades.