Dip Dip Dip...Is it Done? 3 Mar 2023

🖼 Daily Technical Picture 📈

➤ A massive reversal of fortunes as the dip buyers show their hand. Is it the end of the short-term downtrend from the 2nd Feb high?

➤ The honest answer to that is I have no idea and no one else does either. We can only assign probabilities as to what may happen next. That after all is what Trading and Investing is all about. Making a sound judgement and then backing that up with money.

➤ With the current scenario, it is completely unclear to me as to how prices will evolve. That is why I haven't put on a position. That is why my Strategy hasn't given a trading signal.

➤ Today's price action builds on the scenario that I outlined yesteday. That is the Bullish scenario as explained by the abscence of strong selling pressure. I described it as the "drip drip drip" of small downward movements. The large Bullish intention of today's move could mark the end of the drip.

➤ However, there are many complications. One of which is how price resolves itself around the 200 day moving average. It is hanging around there like a bad smell.

➤ Conclusion: Trading is about discipline. We are not forced into a trade, it is a choice. There are good and bad choices.