We seem to be following a downward trend line (cyan, starting 6/26/19) which has acted as a baseline for a possible falling wedge which began taking shape after the 10/25 rally. Falling wedges have an average rise after breakout of 32% in a bull market and 26% in a bear market. An upside break of this potential pattern could eventually lead us back to the 10k area where we will test important resistances. However, a downside break may lead us to test 7400 support areas and potentially much lower.
Pictured here is the 4H time frame which is currently sending many buy signals that higher TFs are not. This could mean that, in the short term, we are headed back to the top of this wedge into the 8300 range. The orange lines indicate major support/resistance and fluctuating price action should be expected near these.
I remain short until the market provides a confirmation of either direction.
Pictured here is the 4H time frame which is currently sending many buy signals that higher TFs are not. This could mean that, in the short term, we are headed back to the top of this wedge into the 8300 range. The orange lines indicate major support/resistance and fluctuating price action should be expected near these.
I remain short until the market provides a confirmation of either direction.