XJO Bearish Wedge Pattern
تم تحديثه
I haven't seen anyone else post it so thought I'd give it a go, the rising wedge pattern is a common formation in bear markets, the closer price moves within the formation to the apex point, the more likely a breakdown will occur and we are close this point as seen in the chart... We have been respecting this pattern really since the start of the rally which really seems to be looking like it has run out of steam (only slightly higher highs since the 31/03) we have only added on an extra 3% since 31/03.
Even after today's surge, which was looking very strong until it reached the top of the wedge range and acted as resistance.
SPX 500 also has the same pattern and I'm convinced that a big move down is coming perhaps near the end of the formation, which looks to be lining up with a challenge of the 50MA on the daily TF, which may eventuate next week or the week after.
Wait for confirmation of course before entering a position.
Even after today's surge, which was looking very strong until it reached the top of the wedge range and acted as resistance.
SPX 500 also has the same pattern and I'm convinced that a big move down is coming perhaps near the end of the formation, which looks to be lining up with a challenge of the 50MA on the daily TF, which may eventuate next week or the week after.
Wait for confirmation of course before entering a position.
ملاحظة
Daily close below the wedge, MACD looking like it's topped and likely to rollover, bearish engulfing candle on the daily... need a confirmation day tomorrow but looking like we will get a drop of some kind, just not certain yet to how big of a drop.I would like to see a daily close below the 20MA and MACD signal below 0 on the hourly at least before going short.
Stay Tuned :)
ملاحظة
Daily close back below the 20 EMA would make the rally from 09/04 - 17/04 a false breakout and potentially trigger a selloff of some magnitude.ملاحظة
Confirmation of breakout below the wedge pattern with a close below both the 20 EMA and 5275 support level, which were short term tests for the bears, so looks like a potential reversal in play at least for the short term. I have a short position held at 5240 with stop loss at 5,400 slightly above the 20 ema.
This is not financial advice just my own opinion and trading strategy setup.
ملاحظة
Looks like it's forming a bear flag on the daily time frame, building up energy to break through the 20 EMA and head to lower levels
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