A very obvious point of Confluence with more potential downside
There seems to be a relief rally on the cards as the NDX approaches a very significant point of confluence whilst posting bull sentiment on the lower time frames.
This relief rally may just be very well short lived as a potential H&S pattern may be at play as the market seems to still remain very oversold with such divergence on higher timeframes more or less suggesting that this bearish sentiment will remain in the longer term.
Currently posting a Doji on the Daily whilst finding support upon the monthly VWAP.
Whilst the RSI reaching 50 and flicking up.
Oversold on the 4H
Posting bullish divergence on the 1H
Higher timeframe RSI still is trending lower.
Point of confluence and resistance above remain at
- RSI on Daily reaching its Average
- 5 Day Moving Average and Weekly Vwap Sitting at 16,600 - 16,700
- 2021 All Time Highs
- December Low Supports now Resistance.
Potential H&S Reversal forming if resistance holds.
This relief rally may just be very well short lived as a potential H&S pattern may be at play as the market seems to still remain very oversold with such divergence on higher timeframes more or less suggesting that this bearish sentiment will remain in the longer term.
Currently posting a Doji on the Daily whilst finding support upon the monthly VWAP.
Whilst the RSI reaching 50 and flicking up.
Oversold on the 4H
Higher timeframe RSI still is trending lower.
Point of confluence and resistance above remain at
- RSI on Daily reaching its Average
- 5 Day Moving Average and Weekly Vwap Sitting at 16,600 - 16,700
- 2021 All Time Highs
- December Low Supports now Resistance.
Potential H&S Reversal forming if resistance holds.
RSI is now oversold and ticked down on the 4H