Sol The situation is as expected, but the bulls still have one way to negotiate.
Over the past few weeks, I have eliminated long trades and kept my directional bias pointing down. So far, the price has continued to follow this path, and a move downward continues to unfold in line with that reading.
The price is now pushing into the AOI zone which the bulls need to defend if they want any real chance of changing the momentum. The main levels for me are 85 and then 90. It is not enough for the price to determine these levels only. The Bulls need to bring them back with intent and show strong acceptance again if they want to get the Bears back on their heels.
On a larger level, this move still looks corrective in nature, which is a big part of why I remain committed to a bearish bias.
However, the bulls still have something they can point to.
One possible explanation here is a major diagonal trend, where the current move down is acting as an inside pullback rather than the start of a new impulsive wave down. If so, this weakness is part of an internal bounce before continuing higher.
For now, I remain bearish unless the bulls can prove otherwise.
If they want to change the tone, I want to see a strong breakout and recovery of behavior around those levels. If not, I think this will likely continue lower and break through the bottom.
Safe trade.
Trade clarity.
