The index is trapped in an accumulation triangle.
In the short term, I am bearish, believing that August and September will maintain the seasonality of poor returns.
It seems quite clear to me that after being rejected at the top of the triangle, profits are being distributed. Bulls are waiting for a touch at the base of the structure to position themselves again.
Seasonality and simple technical evidence appear to be combined here.
Based on historical statistics of cycles and returns, there is also a good probability for the index to reach new highs in the next 12 months.
For these and other reasons, I have maintained this strategy since June 2022.
In the short term, I am bearish, believing that August and September will maintain the seasonality of poor returns.
It seems quite clear to me that after being rejected at the top of the triangle, profits are being distributed. Bulls are waiting for a touch at the base of the structure to position themselves again.
Seasonality and simple technical evidence appear to be combined here.
Based on historical statistics of cycles and returns, there is also a good probability for the index to reach new highs in the next 12 months.
For these and other reasons, I have maintained this strategy since June 2022.
Note
Virtually back at the base of the triangle.Note
I am bothered by the number of people who are becoming optimistic and calling for support in this area. Therefore, I believe that the probability of this triangle breaking downward first and testing the red line is real.
Note
The idea persists, we're almost there.Note
Wow! Trade closed: target reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.