Bull Trap
Updated
Perfect bull trap formation setting up here. Broke this consolidation box the market has been stuck in. People think its safe to enter now, but miss the bigger picture. End result: bull trap.
The white trendline is longterm support that has been support/resistance for the entire year. Broke below it, retested it, failed to break above it and then seen a failure. Now a second retest is on the doorstep. A second failure will be a big red flag.
I wouldn't go long until the market breaks the trend with some volume and holds the interim retest. Looking like a good short until then. 297 around pre-markets, tests the trendline and former support from back in July. Bearish divergence on the MACD, RSI pre-open is making lower highs on higher highs aswell.
The white trendline is longterm support that has been support/resistance for the entire year. Broke below it, retested it, failed to break above it and then seen a failure. Now a second retest is on the doorstep. A second failure will be a big red flag.
I wouldn't go long until the market breaks the trend with some volume and holds the interim retest. Looking like a good short until then. 297 around pre-markets, tests the trendline and former support from back in July. Bearish divergence on the MACD, RSI pre-open is making lower highs on higher highs aswell.
Note
Note
Breaking through the trend and with a lot of volume is a bullish sign. Oversold on the hourly, 4h, etc... A pullback is due, how much though? Where the day ends will be key. Need to see a close above 297.70-297.75 to push higher imo.
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