First view is what is published: is the lowest it has been on the 2H for as far back as the chart will permit going. We are completing the C wave of a correction and are about to continue the bull run. If we extend the channel back, we see long-term parallel growth lines going back all the way to December with multiple points of confirmation. We have simply corrected back to the bottom of the channel.
This could be a very textbook ending before we continue our run up.
The other perspective, and the one I prefer, is that we have completed wave 4 and are about to go onto wave 5 to finish this long-term bull run that fits within this channel.
In both situations, yes there is convergence with the indicators. But indicators are signals that we need to interpret, and interpret correctly. What I am seeing is the very unlikely chance that these indicators continue being . In order for convergence on the to continue we would need to see historically lowest lows. Whereas the room for is very easy to accomplish. Historically, the tendencies have ended when the has dropped into the highly oversold position, which is exactly what we are seeing right now.
Using the , the last time we were this low we started an amazing run for about $450 to $1,400.
Although keep in mind, this is my own opinion and trading decisions should be weighed on your own opinion. But this could be the set up for more significant gains, stop losses can be set fairly tight with minimal losses to capital, making this a fairly low risk trade.