Doesn't look like a bear flag now.... So that's that cleared up. I'm not poking fun, it could have developed into a bear flag, it just didn't look like it to me.... but then the closing half hour cannot be relied upon to form TA decisions, especially across the day's boundary.Except just very occasionally...On the other hand, it did tank, so yes, it was a bear flag.But then again, it didn't develop across 3 cycles.
All that just goes to show that no matter how hard you interpret the charts, you stand on your own and others will always have an honest different opinion. Each will be convinced their opinion is the correct one. Just don't let your opinion fool you into holding onto a trade just because it's going against YOUR opinion. even more important, don't hold onto it because it's going against MY ( or anyone else's) opinion.
So what have we here? A bigger drop than I expected, in fact I expected none. Another day of PD, showing that you can't call PD's on 10 min chart to any accuracy. Inv. H&S now formed with a target of 9380, T1. You can see that 9340 is very important. It forms both a channel down resistance from the top and a support line parallel to the old uptrend support line. These parallel tram lines are very important in giving clues as to where the price is headed. See how the top at 9481 on 21/08 open formed a downtrend resistance line? At the time we had no idea of the future action, bar guessing. See how the tramlines all line up symetrically? It's more than a coincidence. It's a frequent occurrence. Plan your support and resistances from here.....Channel widths tend to be equi- distant too.It defines how far up and down the market will stand. With no major reason for a change, it should be stable from day to day. So from that and the many uptrend lines I have drawn I can see which pair resembles the closest to the recent channel widths. In this case it's the bottom one and the third one up...... So will that define our new channel? Time will tell.