3 month downward trend line successfully defended...
Overall, volume is on the steady decline during the sideway action. There was low volatility and volume in the past 48hr until bears took advantage of the low liquidity and delivered the knockout blow.
Symmetrical triangle formation was finally broken after bulls' fourth failed attempt at breaking above 12200 and the new local low below 11250 was formed. Very weak bullish bounce back at 11150 lvl suggested this is a weak demand zone.
Ever since bulls' second failed attempt at breaking through the 3 month long term downward trend line, buying volume hit its peak and bullish volume has been on the sharp decline.
Looking at the 4 hr timeframe, there was only one bullish candle above the moving average of the volume
Bearish volume, on the other hand, dominated most of the above average volume bars
Bounce back candle in the form of weakish-looking gravestone doji did not help bull's case in that last rally to 12200 too.
We should see the bearish continuation after a brief consolidation. Bulls may be able to reclaim 11500, but the downward will continue until we see the bullish momentum returns
Could this be the bottom? I doubt it because this red candlestick was too weak to be considered the selling climax.
It seemed to me that price move from I1000 11700 was the buying climax that was designed to trap top buyers in order to push the price down even further.
Overall, volume is on the steady decline during the sideway action. There was low volatility and volume in the past 48hr until bears took advantage of the low liquidity and delivered the knockout blow.
Symmetrical triangle formation was finally broken after bulls' fourth failed attempt at breaking above 12200 and the new local low below 11250 was formed. Very weak bullish bounce back at 11150 lvl suggested this is a weak demand zone.
Ever since bulls' second failed attempt at breaking through the 3 month long term downward trend line, buying volume hit its peak and bullish volume has been on the sharp decline.
Looking at the 4 hr timeframe, there was only one bullish candle above the moving average of the volume
Bearish volume, on the other hand, dominated most of the above average volume bars
Bounce back candle in the form of weakish-looking gravestone doji did not help bull's case in that last rally to 12200 too.
We should see the bearish continuation after a brief consolidation. Bulls may be able to reclaim 11500, but the downward will continue until we see the bullish momentum returns
Could this be the bottom? I doubt it because this red candlestick was too weak to be considered the selling climax.
It seemed to me that price move from I1000 11700 was the buying climax that was designed to trap top buyers in order to push the price down even further.