As we know, today the market dropped incredibly in according to the Asian markets. We have been playing off the same trendline support for the past month and a half. Every time we come down into the region we form either an inverse head and shoulders or cup and handle as our reversal pattern. This time we formed a cup and handle pattern. Usually during reversals, we will see the market make a structure low that will trigger oversold and then another one that will actually register as neutral strength. This time we saw the market make a structure low (highlighted in blue circle) and then it registered oversold (yellow circle highlighted). However, we didn't see a retest of new lows to produce a neutral RSI. Instead we saw price just advance higher which makes me speculate if this channel that we have been playing in for over a month will finally be done. We might see it spill over, we did close red on the year just a few days ago. Sentiment isn't too great, be careful, I can see this coming back down after a minimal rally.
Note
After hours is bearish, I was right about this bull trap.
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Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.