Short
$FAANG 2020-OCT-15
THE FAANG PRINTS A PERFECT EVENING STAR
Given that that previous peak was a bearish RSI divergence, it's reasonable to think that this is the final rally before a downturn. Something that an evening start doji would point towards. Additionally, we can see that the regression has moved to a more short term correlation, which has dropped the expected forward range substantially:
Fundamentally, with the anti-trust conversations happening in the US at the moment; specifically around a number of these companies; it makes sense that investors will be more cautious than they have in previous months.
- Price gapped on open, solid green body.
- Little body, little wicks
- Solid red body
Given that that previous peak was a bearish RSI divergence, it's reasonable to think that this is the final rally before a downturn. Something that an evening start doji would point towards. Additionally, we can see that the regression has moved to a more short term correlation, which has dropped the expected forward range substantially:
Fundamentally, with the anti-trust conversations happening in the US at the moment; specifically around a number of these companies; it makes sense that investors will be more cautious than they have in previous months.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.