Good morning traders and happy thanks giving.
Trades today will be waiting for the ECB minutes of the last central bank meeting. There may be further evidence on the assessment of the monetary authorities in matters of Italy’s budget dispute against the European Commission, because in October, ECB chief Mario Draghi was concerned about the development shown.
In yesterday’s article I said:
The most obvious target would be a retracement back towards 11220.
Well the Monday’s POC around 3 O’Clock yesterday. This came as a result of bulls winning the choppy battle early afternoon. By winning that battle the bulls confirmed that yesterday broke the bearish succession of lower lows and lower highs on the daily chart, see below.
I found it interesting that we started the day above the value area, tested the value area high, were rejected at the value area high, then held above the value area for the remainder of the session.
I also found the ‘zig-zag’ interesting. Because the battle zone I referred to a moment ago seems to be the balance point in the middle of that zig-zag.
A bounce from the monthly lows.
Not only did we fail to break the Tuesday low, but we also broke the Tuesday high. So the recent pattern of price action has now been broken. Is it a change of behaviour or just a dead cat bounce?
As expected, the price has retraced back to the underside of the previous range low.
First impressions are bearish, because of the reaction to the underside of this level over the last few hours.
Perhaps there is an opportunity to target the gap from yesterday. Perhaps there is an opportunity to target the POC from yesterday. Or perhaps this is a continuation of the wider bearish move.
If the POC goes, then perhaps the value area low is a target
|Point of Control :||11171||7034||24603|
|Value Area High :||11218||7039||24645|
|Value Area Low :||11051||6972||24550|
|Camarilla Breakout (Bull)||11320||7111||24648|
|Camarilla Breakout (Bear)||11154||6986||24375|