Bullish divergence finally forming on all 3 of 14(d) rsi, stoch slow rsi, and cobra momentum indicator. Looking prepped to form a IH&S reversal pattern.
Seeing a rejection at previous market structure (red trend line) will be a big red flag that bears are still very strong. A test of 7800 resistance would be ideal for the bulls because we would have then slingshot back into previous market structure. I would not anticipate for bulls to be able to do this organically, as there is still alot of fear and unknown in this market. But we must remember this is news driven market, therefore i wouldn't be surprised for a bullish timed news release to help bulls back over previous market structure.
SL will be set at previous low which will invalidate a IH&S pattern.
Good luck with your trades.
Seeing a rejection at previous market structure (red trend line) will be a big red flag that bears are still very strong. A test of 7800 resistance would be ideal for the bulls because we would have then slingshot back into previous market structure. I would not anticipate for bulls to be able to do this organically, as there is still alot of fear and unknown in this market. But we must remember this is news driven market, therefore i wouldn't be surprised for a bullish timed news release to help bulls back over previous market structure.
SL will be set at previous low which will invalidate a IH&S pattern.
Good luck with your trades.