First things first we are currently in a downtrend stuck in this channel... a few things can happen
before we get into it here's somethings to take note of:
- We have rejected off the weekly ichimoku cloud with a fat red candle on the weekly chart
- We have rejected off the top trendline pretty clearly
- Monthly candle about to close in 9 days and its looking pretty bearish so far
- RSI is very high right now and a possible divergence may occur soon
- We have been on a rally for about a month and a half or so
- we need confirmation after this candle for a sniper entry on puts
2 possible scenarios:
1) We can just start dumping right into next week and straight flush down and have a correct expected reaction off the rejection off the channel
2) we can COME UP and retest the trendline, BUT understand if we break to the upside it will be very hard to come back down for new lows
before we get into it here's somethings to take note of:
- We have rejected off the weekly ichimoku cloud with a fat red candle on the weekly chart
- We have rejected off the top trendline pretty clearly
- Monthly candle about to close in 9 days and its looking pretty bearish so far
- RSI is very high right now and a possible divergence may occur soon
- We have been on a rally for about a month and a half or so
- we need confirmation after this candle for a sniper entry on puts
2 possible scenarios:
1) We can just start dumping right into next week and straight flush down and have a correct expected reaction off the rejection off the channel
2) we can COME UP and retest the trendline, BUT understand if we break to the upside it will be very hard to come back down for new lows
Komen:
AND THERE WE GO FOLKS clear rejection off the top of the channel exactly as anticipated perfect opportunity to jump onto something now that we have confirmation check out my second idea!
