After an unbelievable run last week, GRT is taking a breather. On the hourly chart, a descending triangle is forming. Looking at ADX/DI, the trend seems to have lost steam at the moment and taking some time off to decide which way to go. Now, two things need to be watched for the next few days.
1. If the triangle is starting to break downwards, it needs to do so with volume. Otherwise it can be a bear trap. If the break happens on low volume, need to wait for a confirmation, which means waiting for a bounce and a failure with continuation downward.
2. DI plus and minus both are sitting on 20 mark. One of the two needs to perk up and beat the other one down. As ADX gains its upward slope the trend will strengthen towards whichever of the four scenarios play out next.
a. DI plus moving up with price moving down could mean a bear trap. If the triangle breaks to the downside, but a bounce brings price back into the triangle could mean price is not done going up
b. DI minus moving up with price breaking up could mean a bull trap. If the opposite happens and price breaks up and falls back into the triangle and breaks the triangle to the downside, then slide time
c. DI plus moving up with price moving up could mean gearing up for space run 3.0
d. DI minus moving up with price breaking down could mean party is over for now
If price breaks upwards then look for the FIB extension areas for the next bump on the road. If price breaks below look for FIB retrace areas for bounce play and ultimately a support to the boxed area. Let's see what happens.
1. If the triangle is starting to break downwards, it needs to do so with volume. Otherwise it can be a bear trap. If the break happens on low volume, need to wait for a confirmation, which means waiting for a bounce and a failure with continuation downward.
2. DI plus and minus both are sitting on 20 mark. One of the two needs to perk up and beat the other one down. As ADX gains its upward slope the trend will strengthen towards whichever of the four scenarios play out next.
a. DI plus moving up with price moving down could mean a bear trap. If the triangle breaks to the downside, but a bounce brings price back into the triangle could mean price is not done going up
b. DI minus moving up with price breaking up could mean a bull trap. If the opposite happens and price breaks up and falls back into the triangle and breaks the triangle to the downside, then slide time
c. DI plus moving up with price moving up could mean gearing up for space run 3.0
d. DI minus moving up with price breaking down could mean party is over for now
If price breaks upwards then look for the FIB extension areas for the next bump on the road. If price breaks below look for FIB retrace areas for bounce play and ultimately a support to the boxed area. Let's see what happens.
