SET broke through the pennant bottomHello traders out there!
We can now see the full force of the bearish engulfing, the 22nd of July, I hope everyone with active SET trades has protected them, with a stop-loss, or taken out profits since then.
If the slow shielded animal (more explanation about the phrase later) won’t give protection to SET I can still see nice turning points. Mainly due to the simple fact that this run was done with so many gaps.
Investors need to get familiar with a simple fact, that gaps will get filled –sometime in the future, in some timeframe, they will most defiantly get filled.
First of all, I put some trust in 1300 (double zero) support and resistance, and if it gives up, then SET is back in in the “gap-island” support. At the bottom of the island I will also put FIB.50 and if the support from here, either, find the strength to have SET bounce back, well then I would say; “prepare for a setup that can very much mean SET will test March lows”
Finally, let’s finish this with a positive note, for all Bulls out there: can always hope for a classic turtle soup pattern, i.e. false breakout, occur and if it does then be prepared for a ride up north. breakout is almost always a strong signal to the opposite way of the breakout.
