A new trend line has shown itself after forming for the last few weeks.
First, we hit this zone as a resistance level and broke down.
Second, we entered a discovery period where we tested to see if it would break as the resistance which it did.
Here, we are testing it as a support and simultaneously creating a symmetrical triangle. (bullish sign)
While of course there is also a lot of panic in the markets right now and the possibility of a further drawdown here being very real, I personally do not see that happening. The RSI has been reset, we tested the SMA ribbon, and we are strongly holding this support today. I am for this reason buying.
First, we hit this zone as a resistance level and broke down.
Second, we entered a discovery period where we tested to see if it would break as the resistance which it did.
Here, we are testing it as a support and simultaneously creating a symmetrical triangle. (bullish sign)
While of course there is also a lot of panic in the markets right now and the possibility of a further drawdown here being very real, I personally do not see that happening. The RSI has been reset, we tested the SMA ribbon, and we are strongly holding this support today. I am for this reason buying.