price action analysis 1

Mck analysis
Initial impression:
1. Took out the low of the support and close above the support line (false break)
2. Bounce off 50dma on weekly chart with a bullish candle stick.

Further analyze the chart:
3. Bounce off 20dma nicely in the past. Break the structure with a big red candle that cut through 20dma. 20dma bounce no longer valid
4. Bounce off trendline nicely in the past.
Break the structure with a big red candle that cut through the trendline. Trendline bounce no longer valid
5. Retracement on uptrend is getting bigger each time
6. Large red candle (larger than the past candles, market structure likely to change)
7. The strength of the uptrend is weak with smaller candles. The volume is reducing.
8. Looks more like a downtrend (Lower high, Lower low) with a healthy retracement with smaller candles.
9. Similar volume on big bearish candle and small bullish candle.
Interpreration:
Big bearish candle: high volume to push the price lower
Small bullish candle: high volume but not enough to push the price high enough. (Lack of strength)

Summarize:
With further analyze the chart, it invalidate my initial impression. Not a good entry to long.

In coming days, I will post my analysis on a good entry. Stay tune.

#priceaction