We've seen a textbook bounce off of the TD sequential 9 buy after the break of the triangle. However, since we didn't drop low enough (not even breaking the previous swing low as you can see by the red lines) this cannot be considered capitulation. In order to have a more extended swing to the upside we need to break the triangle, the 50 SMA, and Lucid SARs--same as I've been saying for the past few weeks. A lot of resistance. Until then, I can't expect anything other than this bouncing being a 1-4 day correction of the 9 buy and a continuation of the trend downward.
The weekly chart is still not looking great as we are still below the 7, 21, and 50 SMA with the 7 crossing below the 50 in two weeks. Additionally, we are only on a 5 of 9 to the downside. Provided we continue this downtrend, a 9 on the weekly scale coming in 4 weeks could provide the relief we're looking for.
The weekly chart is still not looking great as we are still below the 7, 21, and 50 SMA with the 7 crossing below the 50 in two weeks. Additionally, we are only on a 5 of 9 to the downside. Provided we continue this downtrend, a 9 on the weekly scale coming in 4 weeks could provide the relief we're looking for.
