A false breakout in SMH
Updated
SMH has falsely break out of the 98 double top resistance level on the back of some positive general market sentiment.
However, the break was short lived and it has been quickly auctioned back into the old trading range.
A false pattern is a powerful pattern in itself as a failure at one side of the range tend to fuel move to the other side of the range. Now I am eye it to break the 88 major support and open doors to a much bigger move to the down side.
The massive contracting triangle at the high would imply at least two legs down. Now we only have seen the first leg. The break of the 88 support would be the beginning of the second leg.
However, the break was short lived and it has been quickly auctioned back into the old trading range.
A false pattern is a powerful pattern in itself as a failure at one side of the range tend to fuel move to the other side of the range. Now I am eye it to break the 88 major support and open doors to a much bigger move to the down side.
The massive contracting triangle at the high would imply at least two legs down. Now we only have seen the first leg. The break of the 88 support would be the beginning of the second leg.
Note
In the process of making a two legged correction to the upside. 90 - 92 is the heavy supply area. Watch for bearish rotation there.
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.