People tend to get into trouble when they focus on a lower time frame, without having the context of the higher time frame. In a downtrend, there would be opportunities to go long and make money in a lower time frame. But, do not get greedy and hang around on such trades as they are counter-trend in nature.
Notice the red flag in the chart which represents swing low that has been breached this week. This is a sign that the downtrend is still in force.
Unless the price clears the swing high at 8807, there would be a strong case for a slide to a new low below the recent low of 8,506.
The buying interest in that ellipse has been consumed. What this means is that price will have little trouble in plunging through this zone. The next major support is also highlighted in the chart.
Let's see what is in store.
Wasn't that move smooth and accelerated through that blue ellipse? Price has reached the anticipated support zone mentioned earlier.
As always, let's wait for the price to give us its inclination and we can follow suit.
The context remains bearish as the sequence of lower highs and lower lows is still intact. Until this sequence is broken, it makes sense to look for the next selling opportunity on any rally.