Context:
We've have a couple of decent days since the support test @ 12300 area.
There's been many things going on with treasury bonds, stimulus (which should be signed today), etc.
IMO we are still within the current downtrending channel but showing some signs of hope as we approach some key areas.
in no specific order:
1) 21 EMA on the 1D chart is being tested currently.
Personally I like to see a candle not touching the key zone for a Confirmation.
2) We are still making lower highs
and I am a big believer in we are in said trend until provided evidence of a conflicting idea.
3) 13120 Area shows to have some resistance present, as well as 13300.
Ideally I want to see us get that 13120 area with a nice break or hold. if we reject at these levels it will still have us making lower lows.
(*not going to give exact numbers since depending on what platform you use they can be off slightly from what I've noticed using TOS.*)
Tomorrow's expectation:
TBH, in my opinion it's a bit hard to say...I'm not too sure how much of this rally is due to stimulus if any at all (and if it is due to shimmy then would we see a sell the news type of event or make a push just a bit higher?).
IMO the smart move here would be to watch the key levels and see how it reacts. Rejections/Breakthroughs will tell us more about how to expect the upcoming move, but as it stands right now it's poised to go either way IMO as it's in a spot where if it breaks up then we can end the down trend and at least consolidate, or if it rejects and keeps making Lower highs then our attention will turn to where will the next bottom be and will the recent support hold.
**at the time of writing this a candle just opened up not touching the trend line which could be some great Confirmation coming...but it's too early to tell based off It just beginning to form thus I will exclude it from the analysis.**
What are your thoughts?
is this "correction" over or will we still see some more downside as the economy opens up and vaccines keep circulating?
We've have a couple of decent days since the support test @ 12300 area.
There's been many things going on with treasury bonds, stimulus (which should be signed today), etc.
IMO we are still within the current downtrending channel but showing some signs of hope as we approach some key areas.
in no specific order:
1) 21 EMA on the 1D chart is being tested currently.
Personally I like to see a candle not touching the key zone for a Confirmation.
2) We are still making lower highs
and I am a big believer in we are in said trend until provided evidence of a conflicting idea.
3) 13120 Area shows to have some resistance present, as well as 13300.
Ideally I want to see us get that 13120 area with a nice break or hold. if we reject at these levels it will still have us making lower lows.
(*not going to give exact numbers since depending on what platform you use they can be off slightly from what I've noticed using TOS.*)
Tomorrow's expectation:
TBH, in my opinion it's a bit hard to say...I'm not too sure how much of this rally is due to stimulus if any at all (and if it is due to shimmy then would we see a sell the news type of event or make a push just a bit higher?).
IMO the smart move here would be to watch the key levels and see how it reacts. Rejections/Breakthroughs will tell us more about how to expect the upcoming move, but as it stands right now it's poised to go either way IMO as it's in a spot where if it breaks up then we can end the down trend and at least consolidate, or if it rejects and keeps making Lower highs then our attention will turn to where will the next bottom be and will the recent support hold.
**at the time of writing this a candle just opened up not touching the trend line which could be some great Confirmation coming...but it's too early to tell based off It just beginning to form thus I will exclude it from the analysis.**
What are your thoughts?
is this "correction" over or will we still see some more downside as the economy opens up and vaccines keep circulating?
Trade closed: target reached:
The first red line did serve as a resistance for NQ and we rejected downward.