$FIL: Want to buy the dip? Let the price prove itself first
After the close, the price slipped below the bottom of its previous range, looking weaker than it did at the daily close. The full daily candle remains below both the short- and long-term moving averages, while trading volume is below its recent average. For now, this downward move lacks confirmation from increased volume.
There’s a basis for a bearish view, but treating a price quote breaking below the range as daily confirmation could be premature. If a subsequent full daily close moves back inside the range, it would challenge the current view that the decline is extending. If the price stays outside the range, that would provide stronger evidence that weakness is continuing.
The daily range is 0.8936–1.2766. Which evidence would change your view more: the closing price, or continued trading volume?
#MarketWatch
Disclosure: This article participates in the Square content mining program and may earn trading commissions and engagement rewards.
After the close, the price slipped below the bottom of its previous range, looking weaker than it did at the daily close. The full daily candle remains below both the short- and long-term moving averages, while trading volume is below its recent average. For now, this downward move lacks confirmation from increased volume.
There’s a basis for a bearish view, but treating a price quote breaking below the range as daily confirmation could be premature. If a subsequent full daily close moves back inside the range, it would challenge the current view that the decline is extending. If the price stays outside the range, that would provide stronger evidence that weakness is continuing.
The daily range is 0.8936–1.2766. Which evidence would change your view more: the closing price, or continued trading volume?
#MarketWatch
Disclosure: This article participates in the Square content mining program and may earn trading commissions and engagement rewards.