Seeing this is all over the news and the doom and gloomers are coming out in force (after the fact... of course!)
I thought I would step back to the higher time frames to see where we are...
Interestingly we dropped almost perfectly off the high at the completion of an 8 year gartley pattern
Looking at the chart now, there is really nothing stopping this falling further till we get to around 3365 where there is a confluence of a long term support and resistance line + a demand level + a 61.8% retracement
This would imply a high to low of around 37%, but in context to the last years rally it would still be considered around a 'normal' retracement of 38.2%, therefore I see the confluence zone as a potential area to look for longs and in the mean time look to sell rallies
Keep it simple, ignore the headline news as they are reporters or economists with no money on the line
I.e. not traders...! think like a trader, keep risk low and stack the odds in your favour
I thought I would step back to the higher time frames to see where we are...
Interestingly we dropped almost perfectly off the high at the completion of an 8 year gartley pattern
Looking at the chart now, there is really nothing stopping this falling further till we get to around 3365 where there is a confluence of a long term support and resistance line + a demand level + a 61.8% retracement
This would imply a high to low of around 37%, but in context to the last years rally it would still be considered around a 'normal' retracement of 38.2%, therefore I see the confluence zone as a potential area to look for longs and in the mean time look to sell rallies
Keep it simple, ignore the headline news as they are reporters or economists with no money on the line
I.e. not traders...! think like a trader, keep risk low and stack the odds in your favour
