21 August 2020

Downward Pressure

The blue band provided support again as the STI retested it. However there is still substantial downward pressure. If the STI falls below the blue band next week, it will have formed a head and shoulders structure, with the right shoulder being a half-shoulder. This will be very ominous. It signals that the STI will drop below the blue band (which would be roughly the neck line) by the height of the point marked as c (brown) and x (orange). I will show this properly in the chart if it starts to happen. Let’s keep our fingers crossed.


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