I'm going to throw some new stuff at you here, something I haven't done in a while is enter a short position. Do understand that my signals work for both up and down trends. You simply buy and go long uptrends and short downtrends. We haven't had too many downtrends in the groups we have followed this year, but i have recently decided that within our ETF tracking, we do follow Gold and Bonds and we should include them as asset classes for investment going forward.
That preface aside, this is just a really simple and clean downtrend. It looks just as nice as some of the strong stock uptrends we have seen this year. This one just happens to be flipped over.
Here is the longer term downtrend. We can see that price is steadily declining underneath an also declining 20 WMA. I've been watching this for a while closely and today's action signaled an entry.
We have some pretty bearish price action on the zoomed in Daily view. While price attempted to break to the upside last week it was unable to sustain anything and has since gapped back lower and today extended below the consolidation. Volume was also really high today adding more confidence to the move.
When the long term charts are showing the trend, and the short term views confirm the break, that is what we like to see. Multiple time-frame setups lead to higher probability trades.
We will use the $126 level as our stop and will enter at tomorrow's open.
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