Traders,
I would expect shorts to continue off of this level. We have been seeing LH's for a while now, waiting for new LL's to take form, this is being constricted due to a long term wedge pattern that's obviously formed over time.
1: Price is resisting at the moving averages that are converged, we then had a kicker opening today off this level, showing it may well be immediate resistance.
2: We in harmony with the trend. We have had our 38.2 retracement of the small wave leg, and it makes geometrical sense to see shorts now.
3: Doji's at the MA resistance showed indecision, the kicker type open below the previous days range implies a decision has been made here.
4: Price is confined to a small area now, price is trapped.
5: There is a very nice support resistance transition line here, proving accurate for entries over time. Having a lower low at a MA resistance below this line shows the bulls aren't about right now.
Best of luck,
Tom
I would expect shorts to continue off of this level. We have been seeing LH's for a while now, waiting for new LL's to take form, this is being constricted due to a long term wedge pattern that's obviously formed over time.
1: Price is resisting at the moving averages that are converged, we then had a kicker opening today off this level, showing it may well be immediate resistance.
2: We in harmony with the trend. We have had our 38.2 retracement of the small wave leg, and it makes geometrical sense to see shorts now.
3: Doji's at the MA resistance showed indecision, the kicker type open below the previous days range implies a decision has been made here.
4: Price is confined to a small area now, price is trapped.
5: There is a very nice support resistance transition line here, proving accurate for entries over time. Having a lower low at a MA resistance below this line shows the bulls aren't about right now.
Best of luck,
Tom