The last few hours has seen the market break to the downside, a short congestion zone, followed by the sharpest rally with good volume that we've seen in a while. On the retest we can see that some demand has entered the market as shown by even bigger volume followed by a reversal with the widest spread we've seen so far.
We're now watching to see how supply reacts to these two events. If supply dries up or fails to make a new low, it could signal a short-term trend reversal and we can enter a trading (not investment) position on the long side.
We're now watching to see how supply reacts to these two events. If supply dries up or fails to make a new low, it could signal a short-term trend reversal and we can enter a trading (not investment) position on the long side.
Note
We've just had a sign of strength. The market should now either consolidate or have a short-term rally, unless some major supply comes in shortly.
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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.
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.