Longs squeeze before major move
In the previous Dow Jones analysis I shared some weeks ago, I was expecting market to continue its bullish move more than what it did.
But since I bought near local low at that time, I was able to get out of that trade in profit.
The market then formed Triangle pattern and decided to go downhill from there which we have been seeing recently.
Last Friday, I was expecting market to go up upon the news in price territory of wave 1, then sweep the low before ultimately making its upward move. But instead it seems price went down a bit (not sweeping the low) then entered into price territory of wave 1 and today on market open, we can see a big gap.
Now it turns out, this is yet another good play done by market, trapping the longs with this big gap. I am expecting price to continue downside for now until we make a new low which would be our wave 5 of ending diagonals. From where the real upward move would start.
Waiting patiently for this scenario to play out. I am not gonna buy until the new low has not been formed.
But since I bought near local low at that time, I was able to get out of that trade in profit.
The market then formed Triangle pattern and decided to go downhill from there which we have been seeing recently.
Last Friday, I was expecting market to go up upon the news in price territory of wave 1, then sweep the low before ultimately making its upward move. But instead it seems price went down a bit (not sweeping the low) then entered into price territory of wave 1 and today on market open, we can see a big gap.
Now it turns out, this is yet another good play done by market, trapping the longs with this big gap. I am expecting price to continue downside for now until we make a new low which would be our wave 5 of ending diagonals. From where the real upward move would start.
Waiting patiently for this scenario to play out. I am not gonna buy until the new low has not been formed.
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