Volatility in squeeze motion. BB's are still inside KC's. Once upper B line breaks out, chances are that a big move will come.
Current supply zone has been tested 4 times during last year. The more tests, the weaker it becomes. Will break now? Who knows.
Rounding bottom and positive momentum divergence suggest to hold your seat, once the move comes
Last but not least, there is also the break out from the multiyear red triangle to be aware of...
Comments
glasskey90
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it's going to happen. serious bearish movement coming in this week.
pantheo
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Think so too Glasskey, just needs more time.
pantheo
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Very well said! The markets preety much ignoring everything the last QE years, until the don't. Maybe doesn't break 21.50 this week or the next but there is no way this tension will not escalate in the next two, three months. That's the chart is saying. I'm long too, actually I'm long every time touches 12. Already 100+billions of UST's got sold and absorbed by FED. Thanks for replying my friend, I'm wishing all the best to you and yours!
OldGoat
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I like what you're chart is suggesting as I'm Long VIX. Though I'm not sure VIX plays by the same rules as equities when it comes to chart analysis.
With Russia continuing it's move into Ukraine, things could get pretty wild in a hurry. Europe surely is very nervous about the encroachment. My guess is NATO military action is coming, though sanctions will come first. At minimum there will be Ukrainian resistance fighters. And this changes the rules in Syria -- Vladimir has lost his credibility. Also, the markets have been ignoring the economic reports and earnings recently. At some point the market will stop finding excuses for why the numbers just aren't that good. BTW, long-term I'm very bullish. However, the short-term looks spooky.
Thanks for the chart. Good Luck in your trading.
OldGoat
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Update:
Yesterday Russian troops killed a Ukrainian soldier and wounded another. The US is pulling all US personnel out of Syria and has closed the Syrian Embassy and Consulates. If NATO/US move troops into Poland and/or other border countries, Russia will likely make a large troop movement into the rest of Ukraine. This could get out of hand very quickly.
Keep an eye on Venezuela as well; a revolution could happen very quickly. Their President is using troops against protestors (inflation and poor economy). If Venezuela implodes, it will take Cuba with it and have serious impact on neighbors. It would also spike oil.
OldGoat
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Update:
Russia has 40-45,000 troops on the Ukraine border and another 20-25,000 close by. A move into Ukraine by Russia would take less than a day. The neighbors are getting very nervous. Poland has requested 10,000 NATO troops to reinforce their border. Several other countries are requesting additional support. NATO has already increased aircraft reconnaissance patrols in the area. The US is considering moving at least one warship into the Baltic Sea.