This overall downtrend has yet to be broken. The recent bullish push had some serious volume behind it and had the potential to break into an overall bullish trend but ran out of steam. Im expecting a slight bounce as we hit a support line but since the pitchfork was broken losses and tears seem to be coming :(.
I am a newbie so take my ideas with a grain of salt and invest based on your own opinions.
I believe the “lack of steam” we witnessed had to do with uncertainty and incompletion of expected trends. It’s my opinion that a) we trade sideways for a few days, finally breaking through resistence, or b) we get a double bottom touching previous low from a week or two ago and then we are up from there. I believe the lack of volume is certainly tied to unsure feelings that we’re done here.
But I do believe that we have enough bullish signal over the past couple of days to indicate that if we get a double bottom with rebound, then that feeling of “completion”/seeing the expected play out will push us forward. There is a lot of confirmation bias in the market. If we believe that we’ll see one more dip, a lot of times we will create that scenario (even subconsciously). There is a LOT of psychological influence and bias in trading. We tend to create what we (the majority) expect through our trade decisions and reactions.
But I do believe that we have enough bullish signal over the past couple of days to indicate that if we get a double bottom with rebound, then that feeling of “completion”/seeing the expected play out will push us forward. There is a lot of confirmation bias in the market. If we believe that we’ll see one more dip, a lot of times we will create that scenario (even subconsciously). There is a LOT of psychological influence and bias in trading. We tend to create what we (the majority) expect through our trade decisions and reactions.