Further adding to the potential for 'market uncertainty' and 'lack of clarity' are the tenuous and ongoing negotiations between the U.S. and China around access to semi-conductor IP.
If
Looking at our 1 day RSI against price I am seeing a 'bearish divergence' whereby price makes 'higher-highs' and 'higher-lows' while the RSI prints 'lower-highs' and 'lower-lows'. This can be taken as a 'leveling off' of momentum that often precedes a change in price direction or, at a minimum, a significant pull back within a constructive trend. (see light violet curves)
I would expect that a downside 'gap fill' could be a 'necessary evil' at some point in time across the next 6 weeks or so, and before further gains to the upside could probabilistically be portended from a structural standpoint. The bottom of the gap fill is roughly in confluence with the YTD VWAP (peach).
NOT FINANCIAL ADVICE. ALL STOCKS CAN GO TO ZERO.
Trade closed manually
Direction was correct as price fell down to the low 400's, but the extent of the downside move was not enough to fulfill the parameters of my trade idea. We did not fill the gap to the downside in the time allotted.Disclaimer
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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.