The Lines I have drawn there are to show how similar the previous and current bear market are.
As you can see in the chart the 2014 bear market ended with a touch on the 50MA week MA followed by a monumental move that broke the 50 week MA and started the bull run.
We are currently touching the 50 week. If we are to replicate the 2014 bear market we would see a decline and hold support on our previous resistance at 4200. Then making the upward move to break the 50 day and start the bull run. (remember history doesn't repeat itself but it does rhyme). Looking at our analysis, price should coil over the next moth between the 50 Week MA and the 200 Week Ma just as it did in the 2014 bear market. During this time I will be Dollar cost Averaging every week to build my portfolio.
This trade is no longer valid if we have a weekly candle close below the 200 day MA
As you can see in the chart the 2014 bear market ended with a touch on the 50MA week MA followed by a monumental move that broke the 50 week MA and started the bull run.
We are currently touching the 50 week. If we are to replicate the 2014 bear market we would see a decline and hold support on our previous resistance at 4200. Then making the upward move to break the 50 day and start the bull run. (remember history doesn't repeat itself but it does rhyme). Looking at our analysis, price should coil over the next moth between the 50 Week MA and the 200 Week Ma just as it did in the 2014 bear market. During this time I will be Dollar cost Averaging every week to build my portfolio.
This trade is no longer valid if we have a weekly candle close below the 200 day MA