We had seen a few days of weak corrective action and so i was ready for the break of the bear flag formed by the corrective PA.

This is the chart from 8:30 this morning
And by the close of business today

After hitting 12700 on Thursday (9th Aug) we saw a large reversal on Friday 10th. Since then the recovery has been weak, only reaching 38.2% retrace of Friday’s move and being rejected quickly from that level. This morning’s action saw each move up getting sold quickly and then at lunchtime it popped through the lower TL of the corrective retrace.

Thurs 9th to Friday 10th -400pts
Mon to Tue am  + 160 (max) then declines with LL
Weds lunchtime to End of day – 250 (max)

Leave a Reply