Hey all, 3 months into the market so my TA is pretty bad. I went through some big house tech stocks, and have found bearish formation on many of them (bear flags & rising wedges mainly).
(not a bearish pattern, but hitting resistance. Why would anyone buy at these highs?)
Aside from NQ (obv), the other stocks are all in the same sector and correlate. Is this implying some further drops in tech these upcoming months? These are text-book bearish patterns.
Whatever may happen in the upcoming months is unknowable. Focus on what's happening now and on what led up to now.
That a "bearish pattern" is "textbook" does not necessarily mean that it has any statistical significance or even value, if for no other reason than defining these patterns is next to impossible and may amount to nothing more than bunnies in clouds. There is also the tendency of so many traders to ignore the past, e.g., all the "wedges" and "flags" that have already appeared on the charts yet were followed by new highs.
Ask yourself whether or not whatever it is you're looking at is able to make new highs. The fact of this, or its absence, is unquestionable among everyone who can tell higher from lower and does not depend on patterns or indicators or opinions of any sort: a new high is a new high. If it can't make or maintain a new high, is it able to sustain its trend? If it has trouble with new highs and its trend is in trouble, you may be in business. Until then, relax.