Can short starters then add on lower highs
Om Namah Shivay Brothers, Let us discuss on "How to Trade the Gaps" - ( part 1 ) During the trade progression, many gaps happen. There is no hard and first rule to restict them based on count, or based on where gap can happen / where it can not happen. There is nothing like that. Gaps can happen anywhere during the trend. Say we want to...
A perfect ascending triangle has been created on 1hr. SPY. Expecting a downward move.
Momentum in trend looks weak. RSI with clear bearish divergence and follow up by red candle, with small consolidation on top.
Buy SPY 292 Puts expiring tomorrow at $0.80. Likely to break the support below.
Buy for Intraday EOD Tgt 2836; SL - 2830
This counter rally is running into a hidden bearish divergence. Volume is declining. The trendline breakout didnt bring in a lot of buyers. I expect the stock market to go down, trying to continue it's downtrend. Going straight back to the all time high without looking back would be very surprising.
disclaimer...not an investing/trading recommendation
SPY getting strong support around 100SMA. Market Makers playing to accumulate at lower prices. A Clear divergence between OBV and price change. Nothing to panic still.