I think bulls are seeing a large pennant, thinking that $470 will provide support along the lower trend line of the pennant. There is a possibility it might too.
I'm inclined to think that it will not hold though. If this is a pennant, there is very little time and range to play around in, so it should break soon. The indicators that I use are all showing this will break to the downside and sooner rather than later.
The ADX on the DMI is continuing to trend up showing the downtrend is gaining strength.
The MACD histogram is continuously showing lesser upside momentum while the downside momentum is a bit more consistent in building strength. The MACD itself is digging deep below the 0 line with lower lows each time.
The RSI seems to simply be following the price with lower highs since $680.
I wouldn't short here, in fact if you're inclined to buy this would be the area to do it. However the only case I can make for buying is that we're at the support of the pennant (even though it has broken before). Basically nothing indicator wise looks good to me for buying right now.
I'm inclined to think that it will not hold though. If this is a pennant, there is very little time and range to play around in, so it should break soon. The indicators that I use are all showing this will break to the downside and sooner rather than later.
The ADX on the DMI is continuing to trend up showing the downtrend is gaining strength.
The MACD histogram is continuously showing lesser upside momentum while the downside momentum is a bit more consistent in building strength. The MACD itself is digging deep below the 0 line with lower lows each time.
The RSI seems to simply be following the price with lower highs since $680.
I wouldn't short here, in fact if you're inclined to buy this would be the area to do it. However the only case I can make for buying is that we're at the support of the pennant (even though it has broken before). Basically nothing indicator wise looks good to me for buying right now.
