📌 09.03.2025 Analysis:
✅ 1. Bearish Divergence:
Price Action: Higher high from Nov 26, 2024 → Feb 6, 2025.
SMI: Lower high from Nov 26, 2024 → Feb 19, 2025.
Interpretation: This confirms a bearish divergence—institutions were not supporting the price move despite a new high.
📌 Notes:
Look at how sharp the SMI drop is after making the lower high. The steeper the decline, the stronger the conviction in institutional selling.
If price makes a lower high and SMI declines aggressively, it confirms a reversal.
✅ 2. Volume Confirms Weak Breakout Attempt:
Price made a new high but volume was below the 50-day VMA.
Low volume on a higher high = Weak breakout attempt.
This suggests that buyers lacked conviction, likely retail-driven.
📌 Notes:
Check if there were any large red volume bars during this uptrend.
If large red candles appear in an uptrend with high volume, it signals distribution (institutions selling into strength).
If green candles were small and volume was low, buyers were weak, and the move was unsustainable.
✅ 3. High-Volume Sell-Off Confirms Bearish Conviction:
The last 5 days saw increasing volume on red candles.
Volume during the sell-off is above the 50-day VMA, showing institutional selling.
SMI MA (red line) is declining further = Smart money is not buying at these levels.
📌 Notes:
Since SMI is still declining while testing $70, it suggests institutions are not stepping in to defend support yet.
If WFC closes below $70 with strong volume, expect further downside.
If SMI starts flattening or rising while price holds $70, institutions may be accumulating.
📌 Final Trade Plan:
❌ Bearish Breakdown (If WFC closes below $70 with volume above 50-day VMA)
Sell-off target: $68 → $66.
Confirmation: SMI keeps dropping, high red volume.
✅ Bullish Reversal (If SMI flattens/rises while $70 holds)
Buy signal: WFC stabilizes at $70 with rising green volume.
Target: First bounce to $74 → Next target $78.
Happy Sunday!
Follow me for more updates on this trade 😊🚀
✅ 1. Bearish Divergence:
Price Action: Higher high from Nov 26, 2024 → Feb 6, 2025.
SMI: Lower high from Nov 26, 2024 → Feb 19, 2025.
Interpretation: This confirms a bearish divergence—institutions were not supporting the price move despite a new high.
📌 Notes:
Look at how sharp the SMI drop is after making the lower high. The steeper the decline, the stronger the conviction in institutional selling.
If price makes a lower high and SMI declines aggressively, it confirms a reversal.
✅ 2. Volume Confirms Weak Breakout Attempt:
Price made a new high but volume was below the 50-day VMA.
Low volume on a higher high = Weak breakout attempt.
This suggests that buyers lacked conviction, likely retail-driven.
📌 Notes:
Check if there were any large red volume bars during this uptrend.
If large red candles appear in an uptrend with high volume, it signals distribution (institutions selling into strength).
If green candles were small and volume was low, buyers were weak, and the move was unsustainable.
✅ 3. High-Volume Sell-Off Confirms Bearish Conviction:
The last 5 days saw increasing volume on red candles.
Volume during the sell-off is above the 50-day VMA, showing institutional selling.
SMI MA (red line) is declining further = Smart money is not buying at these levels.
📌 Notes:
Since SMI is still declining while testing $70, it suggests institutions are not stepping in to defend support yet.
If WFC closes below $70 with strong volume, expect further downside.
If SMI starts flattening or rising while price holds $70, institutions may be accumulating.
📌 Final Trade Plan:
❌ Bearish Breakdown (If WFC closes below $70 with volume above 50-day VMA)
Sell-off target: $68 → $66.
Confirmation: SMI keeps dropping, high red volume.
✅ Bullish Reversal (If SMI flattens/rises while $70 holds)
Buy signal: WFC stabilizes at $70 with rising green volume.
Target: First bounce to $74 → Next target $78.
Happy Sunday!
Follow me for more updates on this trade 😊🚀
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.