Some people have been pointing out to me that the Turkish stock market has been hitting all time highs consistently through 2021. However, this is only apparent when looking at Borsa Istanbul Index in Turkish Lira. Once you look at it in term of USD, it becomes quite clear that the opposite is true. The Turkish stock market has been hitting new lows consistently.
We just broke this descending triangle downward. The Borsa Istanbul has suspended trading for the fourth day in a row as of today. We don't know where this index will be when the market opens on 27 December. What we do know is that there is a fully formed descending triangle, and that if it breaks downwards, then we should expect a target of $7.76, a 59% drop from last closing price.
I also suspect that the index will trade sideways for a while after hitting the bottom. Psychologically, recovery does not occur immediately after such a devastating drop. We will keep watch throughout 2021, so stay tuned.
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We remain inside the triangle. That is why the arrow I drew in the original post actually starts from the top of the triangle. I did suspect that we would reach the top of the triangle and reverse from there downwards. Let's see if this prediction holds.
@astarsmog, Good question. The drop from the height of the triangle to its base is 59%. So the target is a 59% drop from the bottom of the triangle. That's how we set a triangle's target for a trade.