Bullish divergence on the 4H price vs RSI chart, Aug 14 to Aug 27, RSI met higher lows, price met lower lows. A strong red candle on Aug 27 with a decent amount of mild capitulation volume.
It's a tell tale sign when one sees a large 4H, 1D red candle with high volume that touches a support range- many stoplosses were triggered.
To trade this divergence, I am adding shares at 162 and targeting 168 and 172 for a gain of +3.7% and 6.45% respectively. We are in the center of the 154.50-172.20 range, which is 11.5% wide, so it only makes sense to use a divergence as a trigger indicator to double down and place targets beyond the pivot.
Lowside risks include 161, 158.70-159.50 range, and 154.50-156.75 range. The gap between 158.30 and 156.75 will get filled if support breaks at 158.71.
Doubling down for this trade @ 158.71-159, and 154.50-156 as shown on the chart.
The Fed will accomodate, the trend is still up, inflation isn't here, risk adjusted dip buying is still the play for the short term. GOOD LUCK
It's a tell tale sign when one sees a large 4H, 1D red candle with high volume that touches a support range- many stoplosses were triggered.
To trade this divergence, I am adding shares at 162 and targeting 168 and 172 for a gain of +3.7% and 6.45% respectively. We are in the center of the 154.50-172.20 range, which is 11.5% wide, so it only makes sense to use a divergence as a trigger indicator to double down and place targets beyond the pivot.
Lowside risks include 161, 158.70-159.50 range, and 154.50-156.75 range. The gap between 158.30 and 156.75 will get filled if support breaks at 158.71.
Doubling down for this trade @ 158.71-159, and 154.50-156 as shown on the chart.
The Fed will accomodate, the trend is still up, inflation isn't here, risk adjusted dip buying is still the play for the short term. GOOD LUCK