And again an on point prediction :) almost followed my first blue line perfectly :), I called that low at 8550 a bit to soon, but we get the picture. Now it is entering resistance zone
, 9300/9500 will be a big one. But we all know what we talked about lately, it's almost certain that most people who are short or went short, probably have a stop above the 9400, the low of a few weeks ago. So i think there is a big amount of stops hanging there. Based on my 'whales' theory, we should bounce off the 9400 and drop to around the 9000 (maybe lower, maybe a bit higher, thats guessing now), This way more short will be attracted into to the market, with even more stops around the 9500/9600. So than we should see another rescue operation from that 9000 up again to break the 9400 and starting to trigger many stops, who than turn into buys, creating a snowball effect (those bulls spike rallies up, giving the assumption buyers are in the market. Than buyers get lured in, from the breakout of 9400. I think we could go towards th
9800/10.000. There the whales will start to unload again, when their done, we could see another big wave down.
Pushing all the shorts out of the market, taking their money, luring buyers again in, taking their money too at the 9800/10000, than we drop again while:
-Many shorts positions have been chased out of the market and earning money from the people who shorted it at the lows.
- AND they have taken money from buyers again who bought at the breakout.
-So now the whales (who bought the market up from the 8300 up), made a big profit from the wave up. AND they have chased money short positions out of the market and making the wave down, WITHOUT them :).
It's quite the theory, time will tell :). But it's weekend now, volume
is lower, manipulation is easier to take those directions. Perfect weekends sideways action, i have talked about many times now
I am still flat since i closed my shot position around the 8500. Maybe i will go long around the 9000, but only a small position, because it's a risky trade against the (down)trend. I will probably build up a big short position from the 9700 up to the 10.100. But of course better judgment at the moments it self.
--For new readers, more info at previous charts