SHORT TERM OUTLOOK - SUPPORT BROKEN: BULLS BEWARE FOR NOW
Today, we saw the break and hold below of an important long term trendline in effect for months leading up to now, as well as several strong points of support.
Rationale for short:
- Break of lower bear flag channel trendline & hold
- Successful retest and rejection of trendline.
- Broken support at 206.80s and 206.00s
- Huge bull rally immediately and decisively reversed to new lows.
- Close below Friday, Tuesday Close prices
- Small bear flag printed in closing hours today, visible on chart at close today.
I am still short, and I have decided on a few important levels below us.
Short 205.71
Target 1: 203.72
Target 2: Lower trendline in current short term descending channel as shown on chart
Conditions: Price must always close (15min candles) below long term trendline we broke
I expect the price to head a lower for now. The 15th could be a reversal point, historically the 15th is the start of the main "Santa Claus" rally in December.
Rationale for short:
- Break of lower bear flag channel trendline & hold
- Successful retest and rejection of trendline.
- Broken support at 206.80s and 206.00s
- Huge bull rally immediately and decisively reversed to new lows.
- Close below Friday, Tuesday Close prices
- Small bear flag printed in closing hours today, visible on chart at close today.
I am still short, and I have decided on a few important levels below us.
Short 205.71
Target 1: 203.72
Target 2: Lower trendline in current short term descending channel as shown on chart
Conditions: Price must always close (15min candles) below long term trendline we broke
I expect the price to head a lower for now. The 15th could be a reversal point, historically the 15th is the start of the main "Santa Claus" rally in December.
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