Bull's level-1 support is broken, keep your eye on the next 2 levelssupport of bulls.
As mentioned before, a 3-levels of support have been formed for bulls recently.
I hope you all have watched these levels very carefully. That's why we do the technical analysis here. If you can not understand them, you will never be able to read the cahrt and use the chart as a tool to help your trading.
For example, to illustrate these support levels' importance, I will use today NASDAQ's market behavior, just to name two observations:
- The gap down just passed the first support level of bulls, which is marked in green
- Today's high is created when the the first support level is touched
Do you still think these price behavior happened just by chance ? Absolutely not. That's why we need to understand the chart well because chart tells us everything, tells us where to buy, tells us where to sell, and tells us what will happen next. Please trust in the chart! The chart never lie to you.
Then, what will happen next ?
From the chart, very simple, I can tell you here:
The the first support level now becomes the resistance of the bulls, unless it can be successfully taken back by bulls, a heading down to test the support strength of the next two levels are very expectable.
