On the monthly chart, it hit the $5.71 supertrend and made a reversal breakdown, starting a correction. The supertrend has two working principles: either it makes a correction at the first hit (like the red-marked area on the left) or, as in my previous post, it breaks through and then comes down for a correction. It chose the first one. In a normal market, this pullback would be enough. However, the index is in a choppy market and hasn’t made the correction it should. That means it could look for new supports.
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$CNVS
On the monthly chart, it hit the $5.71 supertrend and made a reversal breakdown, starting a correction. The supertrend has two working principles: either it makes a correction at the first hit (like the red-marked area on the left) or, as in my previous post, it breaks through and then comes down for a correction. It chose the first one. In a normal market, this pullback would be enough. However, the index is in a choppy market and hasn’t made the correction it should. That means it could look for new supports.