Absa showing downside to R135.00 - SMC also appliedPATTERNS:
Absa is forming one of the two
Either an Reverse Inverse Cup and Handle .
Now price is broken below the handle, the chance is that it'll head to R135.60.
Or it's forming a head and shoulders where the Right Shoulder is now ready to form (upside) then downside to the target.
21>7 - Bearish
Price<200 Bearish
RSI<40 - Bearish
SMC:
We can see a Bearish Fair Value Gap has formed. This is where the 1st and 3rd candle does NOT overlap in price.
The market now will want to rebalance and move up into the gap to fill the orders before it comes down.
Hence, this is when the Right Shoulder will form.
If the price goes back up it'll give a short term BUY SMC to R185.00
If the price continues down then the target will be R135.60.
Regardless, the overall trend and bias is down in the medium term.
