Updated

China H&S target reached and now a bullish wedge

Looks like an almost perfect bullish wedge here. The H&S had a target arond 12.600, which has been reached, so it could be a (temp) turning point. With this bullish wedge at the low, it seems to be a perfect setup. Ideally we see one more drop to test the low again. When seeing it turn a bit at that low, might get a chance to catch the exact low. But in theory, with a wedge we want to see 3 touches of the support line, which we already have here, so it could already have set the low.
This wedge would also perfectly fit the picture of a normal correction of the big drop we had the past days. Making like a right shoulder as we can see on the left.

Note

So we have that other drop now, i am going to try a 30% size here. The markets are dumping but this wedge suggest a temp low is closing in. It can either drop a bit more, maybe even 100 points and still bounce up to create a false break out, a bear trap. If it dumps even more, than the wedge likely failed and it can simply continue to dump. If i really see it bounce back in the wedge again, i will add another 30% and wait for the breakout to complete the pos. So risking a small amount now.

Note

Looks like this idea is failing now. We had a bounce, which almost confirmed the false breakout, but now it's back down again. Making the false breakout very unlikely now. So because of it, it could tank even more. I am cutting my losses here while they are still small. Maybe after a good bounce i might get in again

botje11

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botje11

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