Here we have ALSI 30min chart from around 19. January 2010.
There is down slopping channel which started around the same time. Top of that channel was tested at least five times, while bottom was tested three times.
Yesterday ALSI tried to break to upside, spending almost 3 hours just bellow trend line and at the end when ALSI failed to do that, it just dropped some 600 points.
What are the possible scenarios from here:
- Bearish one will take us down to bellow 23000 and as I am seeing that MACD just rolled over and is breaking 0 line, this scenario is more likely one.
- Bullish one will take us to test upper trend line with stochastic being low (Don't forget stochastic can stay low or high during prolonged trends.).
Trade with trend!