Intraday:
Today we pretty much continued the trend from the end of the day yesterday. We had a bearish rising wedge (red lines) that broke down 45 minutes after the open and settled into what might be a bull channel (orange lines). We traded within this range throughout the course of trading. This may be setting up as a much larger bear wedge which would put us in line with my theories thus far.
Daily:
On the daily timeframe we got what amounts to a continuation pattern as far as candles are concerned. We are getting mixed signals on our indicators which leaves us with an air of uncertainty. The ADX has turned bearish, the MACD histogram is still bearish whereas the signal lines are turning bullish, and the stochastic is still bearish. I wish I had a crystal ball and could tell you exactly what was going to happen but I can’t. The best I can do is to outline the different possibilities.
From here we have a couple of possibilities. We could reverse tomorrow as we have tagged the 10 day ema twice today but as we have formed a continuation candle that is somewhat unlikely. We could continue up until we tag the 20 day ema and form a reversal pattern there. Or we could move up to the blue trend line from the peak before the previous selloff, maybe at the 50 day ema. All three of these things are possible but the overall move should put us back through the lower trend line of our bear flag pattern for a second leg down as we have confirmed a lower high and a lower low. Look for another lower high to set up here sometime soon.
No comments:
Post a Comment