US30 Following 2008 Crash Pattern
Updated
I was watching the patterns in 2008 crash, and how it might translate into today's situation.
Although there are quite some differences between the 2 events. We are having a "war" at this point, and hoping it doesn't escalate.
Pray for peace in Ukraine.
That aside. I have the image of the 2008 Weekly candle chart pasted for easy reference against the present market candles. If you look up my previous ideas, I have mentioned the same.
In 2008, it was a head and shoulders, a break of the neckline, a re-test of the neckline and a further dive down.
In the current market, it is not as obvious, but we are making a lower low, on the weekly today (although there is about 6 hours left 'till market closes for the week).
As with a couple of weeks prior, a strong rejection bearish candle (1) led to a fall in 4 consecutive weeks.
2 weeks ago, we had a strong rally but held barely under the close of the strong rejection bearish candle (1) shown in orange highlights.
With a couple more hours before market closes, I do expect that current momentum holds the candle bearish.
Next week, we'll see how the market reacts. Should another bear candle follow, I would anticipate for price to reach lower into a key demand area around 33200.
Although there are quite some differences between the 2 events. We are having a "war" at this point, and hoping it doesn't escalate.
Pray for peace in Ukraine.
That aside. I have the image of the 2008 Weekly candle chart pasted for easy reference against the present market candles. If you look up my previous ideas, I have mentioned the same.
In 2008, it was a head and shoulders, a break of the neckline, a re-test of the neckline and a further dive down.
In the current market, it is not as obvious, but we are making a lower low, on the weekly today (although there is about 6 hours left 'till market closes for the week).
As with a couple of weeks prior, a strong rejection bearish candle (1) led to a fall in 4 consecutive weeks.
2 weeks ago, we had a strong rally but held barely under the close of the strong rejection bearish candle (1) shown in orange highlights.
With a couple more hours before market closes, I do expect that current momentum holds the candle bearish.
Next week, we'll see how the market reacts. Should another bear candle follow, I would anticipate for price to reach lower into a key demand area around 33200.
Note
Trade idea played out beautifully. Dipped back into the super strong support zone. Next week will determine the rise or fall of the market, given that we have just experienced one of the biggest single day drop in the equities market in a while.
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