Any healthy trend will respect support and resistance levels.
In this chart the thick green line is a valid support which got broken. But where is the retest?? Market should have taken support on the thick red line to go up and test the broken green line, get rejected and come down. Only then I would call this last down phase as a healthy down trend.
Market even broke the thick red line,. Which again was a valid support level. A retest in 4H happened against the thin red line only which isn't even the major support.
Bears made money no doubt, but I won't stay short in this kind of price action. This is an unhealthy down trend.
Daily 50EMA which used to act as a support got broken. That again needs retesting.
I may sound crazy but I am willing to bet on market climbing up to go above the thick green line and Daily 50EMA, then come back down to take support on those two. According to me, the two are still support levels.
Let's hope.
In this chart the thick green line is a valid support which got broken. But where is the retest?? Market should have taken support on the thick red line to go up and test the broken green line, get rejected and come down. Only then I would call this last down phase as a healthy down trend.
Market even broke the thick red line,. Which again was a valid support level. A retest in 4H happened against the thin red line only which isn't even the major support.
Bears made money no doubt, but I won't stay short in this kind of price action. This is an unhealthy down trend.
Daily 50EMA which used to act as a support got broken. That again needs retesting.
I may sound crazy but I am willing to bet on market climbing up to go above the thick green line and Daily 50EMA, then come back down to take support on those two. According to me, the two are still support levels.
Let's hope.