8:58 a.m., EST
The past 48 hours have closed lower for inverse, LABD.
The next four hours may be the key
Using the four-hour chart allows us to break each trading session into two parts (morning, afternoon) as shown above.
Doing this gives us a cleaner picture of what’s happening from a thrust energy perspective.
Thrust energy is a relative number: (Net distance)*(Volume)
The obvious part in the chart, thrust energy is rapidly dissipating as price nears the support area (blue line).
This action could be a secondary test of the spring set-up that has been discussed over the last week or so.
Secondary tests do happen but not that often.
At this juncture in the pre-market, LABD is set to open slightly lower; possibly opening right at the support line.
If time permits, another update will be generated after the morning session (the first four-hours) is complete.
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