Each situation needs to be reviewed independently to assess if the rally has potential, if the breakout is sustainable and if it will lead to big movements.
Here: 1) Clearly there is no potentially for big daily movements. 2) The potential overall would be limited to 3%. 3) The likelyhood of a sustainable rally is average.
Overall the probability of a fake breakout is far from negligible and if not the potential is limited.
Comments
Babar
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Hi, Divergence with VIX is handy to see those breakouts.
Babar
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*fake breakouts
YaKa
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so how do you see it here? please develop.
Babar
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When the Index makes a higher high and the VIX does not make a lower low, odds goes up for fake breakout. This signal is even more stronger when VIX makes a higher low...and on top of that if you have other indicators like fibo targets the setup is really good
YaKa
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so here?
Babar
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2138-2140 is good zone with VIX over 12, now it can still go down 11.30 ish so we'll see how quick it sells and follow up then