Here’s something many traders might not be taking note of that could sweep them off their feet. It’s important to see the big picture.
Let’s talk zones. We have just hit a key level of resistance (white line) with another key level approaching (white line descending wedge). This tells me two things.
1. We could see a slight pullback to 1st line of support- roughly 9200 (green line) followed by a breakout of the wedge into new highs for this year
Or
2. We could see a continuation of our wedge pattern into a bear market down to 7700 (yellow line) and a later bull market around September.
Let’s talk zones. We have just hit a key level of resistance (white line) with another key level approaching (white line descending wedge). This tells me two things.
1. We could see a slight pullback to 1st line of support- roughly 9200 (green line) followed by a breakout of the wedge into new highs for this year
Or
2. We could see a continuation of our wedge pattern into a bear market down to 7700 (yellow line) and a later bull market around September.