The technical figure that reinforces the idea that a rebound could be sustainable over time

The technical figure that reinforces the idea that a rebound could be sustainable over time

This past Friday we had an appointment with the monthly closing of July and I assure you that I was very excited to see what analytical reading the different monthly candles displayed by the main world indices.

well i have one good news since in general I distinguish a dual monthly candlestick pattern known as piercing lines either penetrating patternwhich is the inverse of dark cloud cover and that reinforces the lows seen this month as a possible floor, at least temporarily, for medium-term falls and as a point of origin for a rebound that could be sustainable beyond a couple of weeks.

In order for this pattern of change to be fulfilled, there first had to be a previous bearish trend, which is what has been indisputably seen in recent months. Subsequently, for this pattern to take shape, it was necessary to see a clearly bearish month in which the close was well below the opening levels, something that we could see during June.


Strategic technical analysis of the EuroStoxx 50

Then, the condition was that at the beginning of the following month, in this case July, the selling pressure would cause a downward gap that would mark new lows, and then succumb to an upward counterattack that would lead prices to close the month higher than half of the range of the previous month, something that is a carbon copy of what was seen in the indices on both sides of the Atlantic in June and July.

The reverse bullish price that we have seen in July does not surprise me every time I have been insisting that we had to watch the falling wedge either falling wedge that limited the fall of Wall Street and more clearly of the Nasdaq 100. This graphic pattern, similar to the triangle, already warned us of an exhaustion of the selling current and that is why it had been insisting for some time that it was not necessary to sell and, after surpassing the technological index resistance of 12,175 pointsthe bias of trading What I have been recommending to have in eco trader is bullish.




Nasdaq 100 Strategic Technical Analysis

Source: www.eleconomista.es

Disclaimer: If you need to update/edit/remove this news or article then please contact our support team Learn more

Leave a Comment

Your email address will not be published.