Yesterday we swept the low and created a new action, initiating a bullish reversal. Today price indeed reversed. Not only did the price sweep the lows, we also touched a weekly level (blue dashed line), which kept as support. At this moment price is experiencing resistance against a prior swing low.
As we touched the weekly level, we could zoom in on the 4H chart. Here we can see that we still have a bearish structure. A bearish impuls followed by an ABC correction. We can expect still some bearish continuation with a close below the daily low, creating the base for a inverse head and shoulders.
Continue to act with caution : we are still in a bearish trend. If somewhere down the line there is a lack of confidence in the market, price may reverse quickly. Remark : the index did not correct the one impulsive bearish candle yet, not even after 14 days. Bulls try, but are not convincing yet.
