For the current downfall, the the Oct-2018 lows will try to act as a support, if that’s breached expect it to get the next support at Dec-2016’s double bottom level. Which seems more likely. In case of major fall, we will be back to 2015 range.
Has broken down today but there is a positive divergence on the RSI. Lets see if we get a bounce tom to avoid the breakdown. Else things won't look good for the small caps again
Were the small caps break the immediate support, another 25% fall can be expected. Its critical for them to go back above the trendline it is struggling to get past
Small cap take support at Fibonacci level and forms Doji..
Can Small Cap bounce back from this level?
Previous time (2008 year) when small cap made correction it took 15 bars.
this time also will it take same?
On the weekly chart.
-Breaking out of a falling wedge.
-Bounced off a strong resistance.
-Bounced off 0.618 Fibonacci retracement.
-Bullish divergence on Stochastic.
On the daily chart.
-Bullish divergence on the RSI.
-Bullish divergence on Stochastic.
-Bullish divergence on MACD.
-Bull cross on MACD.
by seeing charts it is clearly visible that bear strength is reducing so we can expect this carnage in smallcaps to be completed in near term. I have posted some similar setups in my previous posts which have been successful so expecting the same in smallcaps fingers crossed
On weekly formation, Dragonfly doji candlestick at support level (downtrend) which is giving sign of reversal wherein the closing price has managed to reach up to opening price. Probably, Indication of relief in coming week!
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