After the harsh drop of 2018 in the stock market we've now enjoyed a signicant uptrend. However looking at the body of the green candles we can see them getting shorter and now recently some red candles as well. This already signals a weakening in the uptrend but now we also see a "abandoned baby" -pattern. This is usually a rare pattern but has been previously quite reliable itself. This is a reversal pattern and lines up with the exhaust seen in the uptrend. Aggressive entry could be taken right now as a short but a more conservative entry would be on break below the 2630 support line.
Following the news in the market such as trade war and taking into consideration the risk of temporary boost from stock buybacks in Q1 should be taken into account if going short.
Following the news in the market such as trade war and taking into consideration the risk of temporary boost from stock buybacks in Q1 should be taken into account if going short.