Chinese markets are currently taking a hit and PDD happens to be coming off a new all-time high and bearish divergence.
Bearish divergence on RSI lead to a new high and eventual price break down.
We are currently sitting at the .382 fibonacci retracement level.
Similar scenario in previous cycle (2018-2019) where bearish divergence occurred and eventually had price fall to the .786 fib level which lines up with our major support line.
.786 fib level for current rally lines up perfectly with the major support line as well. This is exciting. Not only with the major support line but it lines up with the .618 fib level of the previous rally mentioned above.
This price level, approximately $22-$23.50 is the mother of all buy zones in my opinion. Now we may not even go that low but if we do I will be pretty confident in longing there.
I will be looking to make more plays in the other targets above as well, but I’ll be buying bigger bags as we reach the lower and lower levels considering the indicators line up at the time.
I will update as we move forward, good luck trading. Cheers!
Bearish divergence on RSI lead to a new high and eventual price break down.
We are currently sitting at the .382 fibonacci retracement level.
Similar scenario in previous cycle (2018-2019) where bearish divergence occurred and eventually had price fall to the .786 fib level which lines up with our major support line.
.786 fib level for current rally lines up perfectly with the major support line as well. This is exciting. Not only with the major support line but it lines up with the .618 fib level of the previous rally mentioned above.
This price level, approximately $22-$23.50 is the mother of all buy zones in my opinion. Now we may not even go that low but if we do I will be pretty confident in longing there.
I will be looking to make more plays in the other targets above as well, but I’ll be buying bigger bags as we reach the lower and lower levels considering the indicators line up at the time.
I will update as we move forward, good luck trading. Cheers!