Sellers Waning, Bull Long Wick

The 4 hour chart shows a few things that this dump out may be overdone.

Volume is drying up indicating sellers are maybe low on ammo.

A long bullish wick formed which could indicate a support region and a good area to accumulate in.

The bulls were able to end the 9 count on TD Sequential with a fairly good size trend bar on the 4 hour chart.

There could still be another push down so I will be accumulating in this region rather than going all in.

This is a shortish term swing trade. Overall I am looking for a return to the support/resistance line at 6300ish. I will look to short again from there. However in the mean time I am bullish.

My target is 5900. I will not add below 3787 and will cut losses at 3432.

Komentar:

It recently made new low with increased volume which means another leg down is in the cards. I will not add more to this until the downward volume dries up again.

As long as it is increasing volume with lower prices I consider this to be a losing trade so I will not add to it at any price.