As I said last time, the price of the index began to fall from the resistance line. However, having broken through the support line 3720.5 and moving under it for some time already at the end of last week, the price was able to rise and return to the aisles of the ascending channel.
This channel has existed since the beginning of November 2020, when there was a false breakdown of the resistance line, the upper border of the channel 3603.3. The second guide line is the support line formed in September 2020.
Despite several false breakouts that the price has made over the past months, it continues to rise in the channel and is now at the reversal line. A few days ago, the price touched this line at 3836.2 and reversed downward. So now I expect the price to continue to fall. So our final target is support line 3764.9.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
it's holding there , so I'm thinking it may not play out so nicely. get the feeling they want to run it for inauguration and then the drop. Time will tell
@abigreen, agreed. The fact that it has been holding up might signify that we are nearing the end of this nice channel. We could very well see a break out of a few % from this point. So I reckon I'll stay out of this countertrend short, and maybe even look for a break out to new highs.
Interesting analysis though. On the chart I draw this last chop has been on the verge of breaking out of the channel, with its peak well out. Anyway, time will tell indeed.
Correction is inevitable, markets has entered into the unsustainable levels. Stock market has completely disconnected from the real world (Main Street) e.g. Unemployment, Covid-19 cases & deaths, economic data etc. It's scares me to buy at these valuations.. I hope there will be a reconciliation between Wall street and Main street, comes back to the realistic levels, I am waiting!! @Lingrid hope you're right
get the feeling they want to run it for inauguration and then the drop.
Time will tell