This short uptrend bounce has been very hard fought. It's almost been painful to watch. The last two bull flags didn't break out until about 79% of their own retracement. Now, I think the market can go any direction at any time, but given the slow progress of this rally, it seems odd that in the moment of most despair, a moment in which it appeared these bull flags were failing to form and breaking out back down. It seems odd it was in those moments both times that everyone chose to rally and buy when most indicators would tell you it was dropping and you had the opportunity to buy lower very soon.
I'm not much for conspiracy theories. But I'm not blind to the possibility of market manipulation either. Here we are again, we have the chance to observe and see what happens. It would be one hell of a bear trap to bounce off the 79% retracement again. In this case it also happens to fall on a potential physiological being at an even 8k. Everyone is now calling for a , and I agree it could shake down like that. But, There's also the chance it bounces here and has the momentum to make it through the combined resistance of the 79% retrace and mid-line of the downward trend.
Either way, it's going to be a fun ride!
Thanks for reading, let me know what you think!
Also, not that anyone was thinking about it; but I don't recommend using any of this advise for trading...
All of my analyses are formed using my own set of highly technical and complex algorithms that I like to refer to as.. pure speculative imagination!
They've done some studies, and 60% of the time.. I'm wrong every time...
We were in a similar position yesterday. Fell under the 200MA, and with about the same volume and RSI. Arguably, at a worse time of day too.