BULLS JUST REDREW NEW SUPPORT
We were forming a bear pennant (yellow lines) which actually broke to the downside yesterday. Obviously, you could always redraw your support (purple line) but this is when the use of trendlines becomes dangerous. I wrote an article about the misuse of trendlines and we have the perfect example right here.
We already broke support but since price didn't bleed out, bulls try to find a new trendline that would correspond to where price bottomed out and they eventually find it. Price will eventually break that new trendline because, well, pennant is no longer valid.
Looking to take profit below Feb 6 low and will move stops accordingly to avoid giving room for the market to turn around
We already broke support but since price didn't bleed out, bulls try to find a new trendline that would correspond to where price bottomed out and they eventually find it. Price will eventually break that new trendline because, well, pennant is no longer valid.
Looking to take profit below Feb 6 low and will move stops accordingly to avoid giving room for the market to turn around
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