As you can see in the chart many things pointed to a bottom, lower volumes and divergence on many indicators. Short term or intermediate bottom is the question.
The rally has been sustained (no divergences) and is currently forming a bull pennant.
What's really interesting is that the shorts are still much too high in my opinion. If we cross and close that resistance zone it could create large green bars due to shorts buying back in to close their positions. As you can see from the volume profile on the right, a lot of the shorts were taken below that resistance zone.
Trading is all about probabilities, therefore due to the evidence, I think we are more likely to move up to test that resistance zone. What will happen when we get there is the interesting question.... TBD
Also, if the pennant breaks downward and we break local support, then that will be new (bearish) information to consider.
So long, farethewell, pip pip cheerio,
Sir Lambo Moon
(Sent from Lambo)
The rally has been sustained (no divergences) and is currently forming a bull pennant.
What's really interesting is that the shorts are still much too high in my opinion. If we cross and close that resistance zone it could create large green bars due to shorts buying back in to close their positions. As you can see from the volume profile on the right, a lot of the shorts were taken below that resistance zone.
Trading is all about probabilities, therefore due to the evidence, I think we are more likely to move up to test that resistance zone. What will happen when we get there is the interesting question.... TBD
Also, if the pennant breaks downward and we break local support, then that will be new (bearish) information to consider.
So long, farethewell, pip pip cheerio,
Sir Lambo Moon
(Sent from Lambo)
Follow me on twitter where I spit hot fire... @SirLamboMoon
Closes below 3800 are worrisome.