Scenario 1
The chart pattern looks like a descending broadening wedge which is a bullish continuation pattern.
I am expecting bottom to be around 15000-15300 levels if the above mentioned pattern plays out.
For more confluence to my idea, you can check volatility index and dollar index linked below.
VIX is at reversal point with bullish divergence in RSI and DXY was long posted but still following what I mentioned then.
Now it is about to break out of the bull flag and head higher. Both these will add more bearish pressure to stocks.
Death Cross is also likely to play out in couple of days, which is also highly bearish.
Scenario 2
If 16800 level will provide support then reverse H&S pattern will play out.
Scenario 2 is more likely because most of the stocks already bottomed out and will make higher low for bullish continuation.
Will see what happens.
Peace!!
The chart pattern looks like a descending broadening wedge which is a bullish continuation pattern.
I am expecting bottom to be around 15000-15300 levels if the above mentioned pattern plays out.
For more confluence to my idea, you can check volatility index and dollar index linked below.
VIX is at reversal point with bullish divergence in RSI and DXY was long posted but still following what I mentioned then.
Now it is about to break out of the bull flag and head higher. Both these will add more bearish pressure to stocks.
Death Cross is also likely to play out in couple of days, which is also highly bearish.
Scenario 2
If 16800 level will provide support then reverse H&S pattern will play out.
Scenario 2 is more likely because most of the stocks already bottomed out and will make higher low for bullish continuation.
Will see what happens.
Peace!!
