It is dangerous to bottom pick despite getting short term divergences and cluster supports. You need to take those risks as an aggressive trader and manage your trades. Supports are supports till they are held and they can swiftly change to resistances during strongly trending markets such as this one.
It is only our perception that market might find this one as a support and it gets validated only if a rally emerges.
The positional shorts continue to hold their shorts while part booking near the supports.
And aggressive traders style is one of playing the short swings. Let us not get this one mixed up.
The Hour chart shown earlier had a clear markings of a bear flag. While I expected it to rally high before a break-down, it chose to breakdown immediately.
SAN's chart depicted that breakdown point quite clearly.
Do not hesitate to initiate a trade once a plan is done and once the planned trade is done, stay out to plan the next one..don't rush in hastily. Money saved is money earned.
Lastly..if it is the suspected "C" wave., just hold on to those shorts and use rallies to reinitiate more as long as Tech.table don't turn green in weekly TA. (Now it is in total RED).
Daily is clearly downtrending but Friday's price action shows a "Pause" which needs to be confirmed today.
Week Prices clearly shows a clear tendency of supports and resistances around a trendline. The same suggests of a supports @ 5300-5320 and resistances @ 5720 and a bit higher for the current week. More weakness follows once the directional indicator moves into negative zone.
Month too exhibits a crucial juncture for the next phase of action. This semi-log chart(Best suitable for LT charts) shows the tendency of the market to trade in the middle channel for the last 24 months which will get broken incase of a move below 5350(Last major swing low being 5348).
