- RSI attempting to print bullish divergence. To satisfy the rules we must break the first high at 42 to count as a printed bullish divergence.
- Price action wise on the D1 chart:
A red candle after two green days.
The bounce was of a larger degree than all previous red candle sticks during this decline.
The bears are showing their hands fairly early given that the red candle is a lot nastier for buyers than that of others due to wick size.
Note that we can also draw 5 impulsive waves/a succesful ABC to the upside with the two green days.
So
Possibility-> pull back to fib levels and look for next targets (unlikely imo)
Dead bounce and we look for 1.618 ext in box.
- Price action wise on the D1 chart:
A red candle after two green days.
The bounce was of a larger degree than all previous red candle sticks during this decline.
The bears are showing their hands fairly early given that the red candle is a lot nastier for buyers than that of others due to wick size.
Note that we can also draw 5 impulsive waves/a succesful ABC to the upside with the two green days.
So
Possibility-> pull back to fib levels and look for next targets (unlikely imo)
Dead bounce and we look for 1.618 ext in box.
