THE FAANG PRINTS A PERFECT EVENING STAR
Given that that previous peak was a bearish RSI divergence, it's reasonable to think that this is the final rally before a downturn. Something that an evening start doji would point towards. Additionally, we can see that the regression has moved to a more short term correlation, which has dropped the expected forward range substantially:
Fundamentally, with the anti-trust conversations happening in the US at the moment; specifically around a number of these companies; it makes sense that investors will be more cautious than they have in previous months.
- Price gapped on open, solid green body.
- Little body, little wicks
- Solid red body
Given that that previous peak was a bearish RSI divergence, it's reasonable to think that this is the final rally before a downturn. Something that an evening start doji would point towards. Additionally, we can see that the regression has moved to a more short term correlation, which has dropped the expected forward range substantially:
Fundamentally, with the anti-trust conversations happening in the US at the moment; specifically around a number of these companies; it makes sense that investors will be more cautious than they have in previous months.
