Maintaining a short position on a financial asset requires conviction in the face of market noise and temporary upward volatility. Current price action, characterized by a significant rally, serves as a liquidity sweep designed to trap late longs and eliminate short positions rather than signaling a trend reversal. Technical analysis of the monthly timeframe indicates that momentum has slowed, and the market is mimicking historical bearish patterns where shallow retracements precede further downward movement. Because the broader trend remains bearish, the current push toward higher levels is viewed as an opportunity to scale into the position rather than an exit signal. By focusing on structural confirmation and ignoring irrational sentiment, the strategy prioritizes long-term trend alignment over short-term price fluctuations, anticipating an eventual hunt for liquidity on the downside.
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