Was the falling wedge's bullish breakout one big long fakeout?
Never have I seen a fakeout occur of this nature where so many candles(14!)close above the rising wedge as well as a surge of bull volume to go with the initial breakout and on top of the breaking above the neckline of an inverted head and shoulders pattern at the same time and closing 5 candles above it as well only to have the price somehow eventually crash back inside the rising wedge and try to threaten to break the bigger normal head and shoulders neckline again. These are instances for which TA typically doesn't help they occur an incredibly small percentage of the time but there were 2 TA indicators that were signaling a further drop and that was the cross of the 1day t line under the 1 day 50MA and also the fact that we have formed a lower high on the 4hr chart. I didn't expect 2 bullish breakouts to turnout to be duds though so it's very surprising. Now we are threatening to hit the bottom of the rising wedge and the bigger head and shoulders pattern again with the price action but there is good news. There's a chance we could trigger a standard double bottom pattern with the price we hit on the 18th and shoot right back up. The 1 day chart's RSI is showing that we have reached the oversold zone which gives the beige horizontal trendline indicating where a double bottom would be a lot of credibility as a great bounce support line around $7920. There's also a chance that the original top trendline of the wedge is much higher and we haven't actually broken out of it yet, which is possible concerning this odd fakeout but not enough touches of that higher top trendline yet to change the current wedge lines if we get one more though the top trendline will be raised...If we were to trigger the bigger normal head and shoulder pattern here then that would be quite bad news indeed for it would drop us to around a new drop target of 6300s if it were to occur...I still have faith in the upside for now but will be exiting again if I see a break of the head and shoulders pattern occur. You make your own decisions of course as this is not financial advice. Neutral for now.
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