After Chinese GDP sent the markets selling on Friday we seem to be starting wave (3). Now at resistance of 26700 zone. Waiting for the break of the support to add another short trade and see how it tests the uptrend line. 3rd bounce would confirm it, offering more trading opportunity. Today is Brexit vote in Parliament. Let's see if indices react to the outcome. Have a great weekend!
IMO good chance of a bounce Monday to a .62 Fib retrace as it did on 8/9 October before test of lower TL; expect R at 26900.
Typically selloff waves will proceed in impulsive manner; if Friday was (1) might see a bullish (2) Mon/Tues then (3) of [3].
I expect it may very likely rise to retest breakdown point, and then sell in earnest. After sell to bottom Tl, if it holds near 26480, will be terrific buy IMO.
Undertone is Bullish, my gut tells me we did not yet see ATH for 2019 yet... but I've been wrong twice before! Ty for post, GLTA!
Antonio_trader
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@DaddySawbucks, thanks for the comment! Yes pullbacks are possible after sell offs like this, but overall see the downside. On Monday will look if it will show reversal patterns. Could be short term long before selling again.
DaddySawbucks
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@AntonioFX777, Yep my thoughts zackly the bulls wont give up so easy. On Friday internals were surprisingly firm with Advancers > Decliners. No capitulation in sight!
Typically selloff waves will proceed in impulsive manner; if Friday was (1) might see a bullish (2) Mon/Tues then (3) of [3].
I expect it may very likely rise to retest breakdown point, and then sell in earnest. After sell to bottom Tl, if it holds near 26480, will be terrific buy IMO.
Undertone is Bullish, my gut tells me we did not yet see ATH for 2019 yet... but I've been wrong twice before! Ty for post, GLTA!