The blue bearish trend line that was busted to the upside back in April set an upside objective target marked with arrows. The bullish run reached the objective last week. This likely finished off a 5 leg motive wave where selling interest was found. The market looks to be in a corrective mode now where shallow Fibonacci levels are likely the downside target for leg A of an A-B-C pattern.
The Average Directional Index (ADX), which measures trend strength, is weak as the line drops. The directional index lines signal a neutral trend as they tangle up. This helps predict a flat A-B-C correction possibility.
The RSI remains in a bullish zone, which shows buying interest hanging around the shallow Fibonacci levels. The market should remain in consolidation where the red 100-day moving average provides support on the downside and the bulls maintain control. A buy near the moving average makes sense here (with protective stops if the market decides to change its mind)
Happy Trading.
The Average Directional Index (ADX), which measures trend strength, is weak as the line drops. The directional index lines signal a neutral trend as they tangle up. This helps predict a flat A-B-C correction possibility.
The RSI remains in a bullish zone, which shows buying interest hanging around the shallow Fibonacci levels. The market should remain in consolidation where the red 100-day moving average provides support on the downside and the bulls maintain control. A buy near the moving average makes sense here (with protective stops if the market decides to change its mind)
Happy Trading.