Trend identification tools confirm the down trend in the weekly time-frame.
Both the price and the Lagging Line are below the cloud, indicating a bearish state.
As the price is now above the Conversion and Base Lines, this could be a good place to enter short if there is a resumption in the down trend.
An over-bought situation or bearish divergence signal can give supporting evidence of the probability of a resumption in the down trend.
GMMA short term group is below the long term group and being resisted, thus supporting a bearish view in the weekly time-frame.
Weekly MACD-Histogram has ticked down, thus weekly Impulse allows to sell short in the daily time-frame.
There is a price-volume divergence in this counter-trend rally, and the stochastic oscillator is approaching the over-bought level.
Based on Ichimoku analysis, the daily time-frame is bullish since both price and Lagging Line are above the cloud.
In addition, the Conversion Line is above the Base Line.
However, examination of the GMMA indicator reveals that the long-term GMMA group is not expanding, thus suggesting that the bullishness is not supported by the investor group.
A non-ideal hanging man reversal pattern was formed just below the $30.00 S/R level confluence with down-sloping 200d SMA.
Daily MACD-Histogram is showing a bearish divergence.
Stochastic oscillator has given a bearish crossover signal from above the overbought level.
Conclusion: Weekly trend is down. Daily trend is up but show signs of faltering. Would like to enter a SHORT trade after what is believed to be the peak of a counter-trend rally.
Outcome:
9 Jan: Opened SHORT at $28.70
26 Jan: Covered at $31.35
Reason for covering: Stop loss triggered.
Loss $2.65, 9.2%
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