We have just poked through the short term downtrend line, bouncing off a well established resistance level at S1. Larger downtrend line remains intact for now. I expect a retest of this large downtrend line for the following reasons:
1. Chaikin Osc shows bullish divergence from the ADL (acc/dist).
2. Though the ADL is in a downtrend, it looks poised to break upwards given reason (1) coupled with recent price action (upwards break of short term downtrend)
3. upwards trending RSI. The trend line has not been confirmed, but it looks like we just saw a bullish failure swing (correct me if I'm wrong, I only just found out about these). At the moment the typical 40-50 RSI support zone is holding.
Based on this analysis I'd be wary of entering any position until a break or bounce off the price's larger downtrend line. Of course, that depends on your time frame and the signals you use for trading. This will be exciting no matter which way it goes :)
1. Chaikin Osc shows bullish divergence from the ADL (acc/dist).
2. Though the ADL is in a downtrend, it looks poised to break upwards given reason (1) coupled with recent price action (upwards break of short term downtrend)
3. upwards trending RSI. The trend line has not been confirmed, but it looks like we just saw a bullish failure swing (correct me if I'm wrong, I only just found out about these). At the moment the typical 40-50 RSI support zone is holding.
Based on this analysis I'd be wary of entering any position until a break or bounce off the price's larger downtrend line. Of course, that depends on your time frame and the signals you use for trading. This will be exciting no matter which way it goes :)