Two possible routes for the coming weeks..
Updated
Not usually one to speculate which way the market is gunna go but I see it probably taking on this form.
Bullish case:
Brief retest of support area of 13,000ish (blue bar) and boost back up, maybe get back into the former channel/ascending wedge (blue dotted lines).. former resistances become supports.. End pattern might look like an inverse head and shoulders.
Bearish case:
Breakdown through the support area of 13,000 and then back down to the 12600ish support area (green bar).. former supports becoming resistance etc. Can't imagine such a fall will go without substantial uptick days but who knows..
Anticipating the bullish case as I'm naturally bullish and think this is a much needed breather for the market before tech makes another push for highs. Limiting too much exposure to a tech heavy portfolio until the main scares of inflation are over, and when this switching out of tech-to-value/cyclical stocks looses its momentum.
Bullish case:
Brief retest of support area of 13,000ish (blue bar) and boost back up, maybe get back into the former channel/ascending wedge (blue dotted lines).. former resistances become supports.. End pattern might look like an inverse head and shoulders.
Bearish case:
Breakdown through the support area of 13,000 and then back down to the 12600ish support area (green bar).. former supports becoming resistance etc. Can't imagine such a fall will go without substantial uptick days but who knows..
Anticipating the bullish case as I'm naturally bullish and think this is a much needed breather for the market before tech makes another push for highs. Limiting too much exposure to a tech heavy portfolio until the main scares of inflation are over, and when this switching out of tech-to-value/cyclical stocks looses its momentum.
Note
Bounced off the blue bar support at 13000ish and finished green. Let's see what next week brings..Note
Looking good, needs to close back within it's channel and maybe in the next few days regain ground above its 50 day sma.
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