Let's see if this is a massive head and shoulders forming on the RSI. If so, I suspect we will blast down to at least May lows of 2744.
Comment:
Moreover, there's a large resistance at ~2940 since it's failed to break out 2 times and potentially a third time as well. In addition, 20 EMA is still below the 50 EMA and we are still adhering to the retracement pattern without a breakout above .618. All I see is this rubber band tightening further and further until we skyrocket downwards :)
Comment:
Our EMA 20 is still locked below the EMA 50, so as long as that's the case I would confidently be bearish. It'll be harder for EMA 20 to break out of the EMA 50 the longer it's trapped under it. As it stands, any volatility between 2822 and 2949 can be considered nothing more than an ephemeral retracement. This is of course healthy downward movement for us bears for the spring to be released to EMA 100 or EMA 200 and beyond.
Comment:
Look for a minor retracement up towards .382 before we resume our fall through to 2823 since we hit a double bottom at around .236.