$SOXLB -hour low, current price 91.63, previous low 92.55.
After a new low, there are usually three possible scenarios:
① A rebound gets rejected at the previous low: the downtrend continues
② Price fluctuates around the previous low: consolidation, direction unclear
③ Price quickly recovers the previous low and holds above it: a bear trap
For now, price is still below the previous low. Watch to see whether scenario ① or ② plays out.
After a new low, there are usually three possible scenarios:
① A rebound gets rejected at the previous low: the downtrend continues
② Price fluctuates around the previous low: consolidation, direction unclear
③ Price quickly recovers the previous low and holds above it: a bear trap
For now, price is still below the previous low. Watch to see whether scenario ① or ② plays out.