A Confusing Technical Situation to Say the Least
Here’s the skinny: we saw a potential double top [T1] and [T2] beginning September. That didn’t pan out and we knew it as soon as the downside breakout was followed by a high-volume buying surge. Now, we see a double bottom in [B1] and [B2], but the breakout from that level is meandering sideways.
There’s likely to be a drop in the near-term. For how long, and how deep? It’s relative, as much of the short-term volatility is news driven at this point. Lots of uncertainty for reasons we all know (i.e. COVID, etc.). Plus, is this milestone a reflection of economic resilience, or does it reflect the product of monetary and fiscal intervention minus “real” production?
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