As you can see the market made a double top which is an indication of a trend reversal.
As you see there is a false breakout of the resistance level (the slight red line around the double top).this false breakout indicated a trend reversal as well.The divergence between the price and the relative strength index confirmed this trend reversal signal.
now the market reached a very important level which is a support level + a bullish trend line .SO what is going to happen and what should we do in this situation ?
I think that the market will still go down according to the technical analysis that I talked about earlier( double top+ false breakout+diveregnece) but the market doesn't know me and it does not care about my analysis.what we know is that the market is at a very important levels so there will be three scenarios :
1- The market will bounce from the support level and continue going up (here we have nothing to do ) 2- the market will break strong the support level ( here we can take a short entry)
3-The market will retest the trend line and gives a bearish signal so we can enter after the breakout of the support level.
WHAT DO YOU THINK ABOUT MY IDEA PLEASE COMMENT AND LIKE TO SUPPORT ME