From K1 to K3, it is a short term downtrend.
K3 just break down.
It seems that the downtrend had not ended yet.
K3 close to the 0.5fib line of the nearest uptrend.
The nearest uptrend most likely had been terminated.
If we short it here(26200-26600),stop loss set at 26900.
Or We can wait for more evidence to find another good place to short it. Comment:
After K1 break up the downtrend line,K4 is the first test of the line.
K4 stand upon the 0.5fib line of the nearest uptrend.
That’s good signals for bull force.
If the short term uptrend want to recover, K5 should close upon K3.
If K5 price down to test the downtrend line for a second time with low volume.
the short term uptrend will also recover.
If that is the fact, short position should stop loss.
Supply and demand pressure are temporarily in balance.
Price up to test the resistance is also likely happen in the coming days.
If that is the fact, I will continue to short it there.