It’s been just 2 weeks into 2016 and traders have been challenged by the bearish market already. The overall pattern of double bottoms mean we need to wait for confirmation before we conclude if it’s a bearish or bullish trend in the market.
Our bias will determine our next stance. Traders cannot predict the market, but they need to anticipate the subsequent move and plan accordingly. The plan usually consists of entry, exit, stop loss and target profit. The levels provide structure into your trades.
Back to the market price action, we still need one more confirmation candle before we can form our opinion: bearish or bullish. Past pattern analysis suggests this will lead to more bearish move in short term.
We will change our bearish opinion, if price action confirms that recent support level will hold. We need to see another testing to the low and a bounce back up which penetrates the highest candle on the previous swing up.
Have a good trade!