Will We finally Break the Ascending Wedge that we have been in for almost a month?
If we break down and continue down, then we have gotten a very big fat bull trap by getting above some resistance levels last Friday. We had a nice 4 day weekend to contemplate how prices could now flip bullish. Many people that were bearish started to think like a bull, they had to derisk based on their trading rules. This gave some much-needed liquidity to the institutions. Was it enough liquidity for them to get out and go short? Who knows, but I still hold true to my bearish bias. We also have had some very interesting fake out its the lunar cycles as well, which is in perfect confluence with this recent "possible" bull trap. We still have the daily stochastics in overbought and crossed. High RSI Levels. General Declining Volume on the "dead cat bounce" signaling reversal. We will be rejecting the 21 monthly EMA if we continue down from here and especially if we close below these levels by the end of the month. We still have the Bearish divergence on the 1 hr chart and that has been in tact for almost two weeks. We have had bearish price movement, and to expect a V bottom out of that with all of the larger time factors as well as deep fundamental timebombs in our economy. I will keep being bearish unless we do some longer-term consolidation within the purple flag (above 265) and above the 21 monthly EMA for an extended period of time.
If we break down and continue down, then we have gotten a very big fat bull trap by getting above some resistance levels last Friday. We had a nice 4 day weekend to contemplate how prices could now flip bullish. Many people that were bearish started to think like a bull, they had to derisk based on their trading rules. This gave some much-needed liquidity to the institutions. Was it enough liquidity for them to get out and go short? Who knows, but I still hold true to my bearish bias. We also have had some very interesting fake out its the lunar cycles as well, which is in perfect confluence with this recent "possible" bull trap. We still have the daily stochastics in overbought and crossed. High RSI Levels. General Declining Volume on the "dead cat bounce" signaling reversal. We will be rejecting the 21 monthly EMA if we continue down from here and especially if we close below these levels by the end of the month. We still have the Bearish divergence on the 1 hr chart and that has been in tact for almost two weeks. We have had bearish price movement, and to expect a V bottom out of that with all of the larger time factors as well as deep fundamental timebombs in our economy. I will keep being bearish unless we do some longer-term consolidation within the purple flag (above 265) and above the 21 monthly EMA for an extended period of time.
Watch for some small TF upside with the counter trendline break. Very small Timeframe. Watch for a break of these lows as they are historical support all throughout October to December at 262.80