- I am not saying the bottom is in, but what if the bottom is in? In this analysis, I will tell you why it is possible!
- Everyone is extremely bearish on the stock market. There is a record of purchasing PUT options from retail investors and usually the majority is wrong. But in this case, the majority could be right. We don't know.
- As you can see, we have a huge parallel channel on the daily chart, and I would love to see a breakout above the channel.
- But from the Elliott Wave perspective, an ABC correction (ZigZag) can be considered as completed with an extended A wave. If you are an Elliott Wave trader, you see a nice impulse wave as a C wave.
- If we take a look at the RSI indicator, we can see a bullish divergence on the daily timeframe. This gives us hope for at least a bullish bounce to the upside.
- The 200 moving average is powerful on the weekly and daily chart. This MA is considered a strong support/resistance by huge institutions and hedge funds together with the 0.618 FIB retracement.
- Interest rates are rising, which is, of course, very bad for the stock market. I know this and that's why I am not buying stocks, because I am a trader, not an investor, even though I have bitcoins for the long term.
- So, has the stock market reached its bottom? I would say maybe a 30% probability.
- Look at my idea about Bitcoin in the related section down below.
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