We had a high breakdown in uptrend, followed by a low, lower high, lower low. Sounds perfect start to a downtrend, but then Trickster Trevor came in and put in a higher high. As seen in my week ahead update we were expecting a higher low below 2952 Monday. But we got even higher so what now. I have outlined a bullish and a bearish scenario with arrows, keep in mind would continue going up and down between 2770 and 2970. I think that based on how long we traded sideways the bulls are gonna have tough time holding the neckline from earlier, I even said this on my week ahead update. The probability is very high that we will get back down to the lower end of the trading range I'm gonna say about 80%, question is will we make a lower low below 2768. Bulls want a breakout but based on shorterm overbought conditions they are gonna have a hard time. For the bears I don't like that we made a higher high but I trend to think bearish scenario is more likely, I like how the bears are slowly moving down right now sort of preserving energy to probably make a lower low.
What should you do if you're not in this? wait it out till we get a clear trend out of this trading range, unless you want to swing trade the range possibly, or just day trade
what if you're long? well my stop would be 2768
If you're short? My stop would 3026
What should you do if you're not in this? wait it out till we get a clear trend out of this trading range, unless you want to swing trade the range possibly, or just day trade
what if you're long? well my stop would be 2768
If you're short? My stop would 3026
