The probability of a long term Diamond Top pattern development is increasing on the weekly chart.
Diamond Tops are one of the most reliable bearish patterns, when they get validation in form of a breakdown, that often triggers a long term bear market. Diamond Tops are quite rare, but when validated they are very reliable to mark a long term trend reversal =end of bullish trend and start of bearish trend). This pattern often takes months to develop... well, in case of Nasdaq100 it has been forming for 16 months!
Until Price trades below 4525, we have to assume this will be one of the biggest diamond tops of the history.
Pattern validation: break below 4180.
Bear market confirmation: Lower low and multi-year trendline break below 3875
Measure tgt: textbook target is the distamce between top and bottom of the diamond - to 2865
I know for lot of people it is very hard to trade a weekly setup, but this really worth following. Price may still spike within the possible diamond, but I believe eventually it will break down, and we'll see a heavy bear market.
Further notes:
- Just like in case of SP500 (pls see link below), Kijun Sen has been flat for 10 months now: market stopped bullish trending
- Bearish Senkou Span cross (Forward Kumo twist) is about to happen!
- Tenkan and Kijun slightly point down
- EWO has initial bearish bias
- Heikin-Ashi has bearish bias (a pause, consolidation is possible next week)
Wether bullish or bearish, the breakout will happen the latest in August-September.
Good luck!
Diamond Tops are one of the most reliable bearish patterns, when they get validation in form of a breakdown, that often triggers a long term bear market. Diamond Tops are quite rare, but when validated they are very reliable to mark a long term trend reversal =end of bullish trend and start of bearish trend). This pattern often takes months to develop... well, in case of Nasdaq100 it has been forming for 16 months!
Until Price trades below 4525, we have to assume this will be one of the biggest diamond tops of the history.
Pattern validation: break below 4180.
Bear market confirmation: Lower low and multi-year trendline break below 3875
Measure tgt: textbook target is the distamce between top and bottom of the diamond - to 2865
I know for lot of people it is very hard to trade a weekly setup, but this really worth following. Price may still spike within the possible diamond, but I believe eventually it will break down, and we'll see a heavy bear market.
Further notes:
- Just like in case of SP500 (pls see link below), Kijun Sen has been flat for 10 months now: market stopped bullish trending
- Bearish Senkou Span cross (Forward Kumo twist) is about to happen!
- Tenkan and Kijun slightly point down
- EWO has initial bearish bias
- Heikin-Ashi has bearish bias (a pause, consolidation is possible next week)
Wether bullish or bearish, the breakout will happen the latest in August-September.
Good luck!
