a technical analysis pattern (in this case reversal) is simply a clue that the probability of making money on the short side (if confirmed) is higher than on the long side. there's an edge in a confirmed break of those support lines. how strong the break is is anyone's guess and there are various ways of measuring a potential target to the downside. both patterns show signs of weakness in price action and the correct trade is to short on confirmation. manage your risk and see where the trade takes you. also key to remember that the overall longer term trend on the ALSI (for now...) is up and as such we're very much in a bull market. don't get caught up in the hype and noise (read fear) which seems to be ratcheting up on a daily basis. small gains banked and being nimble from an ALSI trading point of view is probably prudent in this very volatile market environment. don't therefore commit to being a bear or bull. you're just here to take your trades and to make money, whether that's on the long or short side. good luck
