Stop Loss hits on yesterday @ 5800 for our short initiated from 6020.
Complete Gain of 220 points 7 trading days. :-)
Yesterday price breaks the channel on upside and made high of 5808.5
But it couldn't sustain there and slipped down near to the previous low 5675 but didn't break the low in spot (it broke the low in future chart).
RSI is making +ve divergence which signals that Price will take breath here before next move which will decide the market trend.
I can see few possibilities here -
Till now, i can look complete down move from 6093 is a complex correction - double zigzag.
So either price reversed from here or there 1 more corrective pattern left which could break the current low of 5675.
Considering this there was 2 possibility are either zigzag or flat will unfold.
if zigzag, then price should make a low near to 5630 And if flat, Price will go high near 5800 and then should make low near 5670. This will last corrective pattern in complex correction of this down move.
These are the scenario i am considering whipsaw seen yesterday, otherwise price should take reversal and will start new trend in upward direction as there was Higher High & Higher Low seen first time in complete down move on daily chart. let's watch how the price will unfold today. Happy trading!!!
