After the trade negotiations went bad, the market's been just bloody. The outcome of the negotiation was not anticipated, but signs of a decline or at least a consolidation were present in the chart (I did an analysis back then; check it out ). For now, my best guess is that we are all in a cluster of uncertainty and have no idea where the market is heading towards. But let's take a look at the chart...
After the spectacular rally from late 2018 to May 2019, the market challenged the old all-time high and it failed to establish a new all-time high. Prior to that, the was an ascending wedge. This wedge did breakout from the bottom as the indicators were signaling sell with divergence. For now, we have a Broadening Wedges, Descending formation. This pattern usually breaks in the opposite direction of the prior trend. Having an upward prior trend suggests that the pattern is more likely to break from the bottom. Meanwhile, we closed last week below the resistance level ~2870.00 after the price challenged this level and failed to rise above it. The indicators are still on the bearish side; The bearish momentum is decreasing on the MACD daily chart while on the other hand, it is increasing on the MACD hourly chart. To conclude, certainly is a poison for businesses and investors. This does not mean that we are one step to a recession, but I anticipate that the fruitful days are about to end for the bulls.
For updates, stay tuned...
Yorum
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Congratulations...! Trading below the 100 MA and the bullish momentum is still increasing...