In the , we have the idea of a harami, just at a (black line, previous top at 14,072).
If the index closes under this black line, the market may see this as a false breakout and this would help to make the index fall.
If it falls, then we have a dual-support level around the 13,700, as we have the 21 and the red line, which worked as a resistance before, now it can work as a support.
The only thing that could frustrate this sentiment is the 1h chart:
Today’s drop could be just a harmless pullback to the 21 in the 1h chart, and the index did several movements like this in the past, so, no way to know how it’ll behave now.
Now it is definitely not the time to buy. The time to buy was last month, when we had some incredible opportunities, and I bought several stocks with my followers, and they are doing incredibly well (several of our stocks are going up more than 40%, like the Brazilian ADRs we like to trade). Now it is the time to manage our positions.
Will the harami prevail, making the index will crash? Only time will tell. Meanwhile, remember to follow me to keep in touch with my daily studies, and support this idea if it helped you!
Thank you very much.