Hello traders
I have been out of the office for most of the day, so have not had the opportunity to write, so it’s a shorter article today. No charts
The daily chart recently saw a bearish Marabuzo candle, I was looking out for a 50% retracement with a possible sell opportunity. This hasn’t worked out because price this morning continued to rally and instead we reached just short of 10700 today. On the bigger picture, we are still trapped inside the large range. It’s still bearish below 10830 and strengthens the longer term view if we close today under 10670.
On the H4 chart the oscillator has now tested the oversold zone and price reached the lower Bollinger band, creeping just inside the 0.382 retracement from the November swing. If we continue to be bearish, I think the 10425-10500 zone could still be seen.
On the H1 chart we are now comfortably back inside the smaller, more recent range after testing range support yesterday. It’s possible that the piercing of the range support yesterday would have trapped many traders who opened a short position expecting for price to continue to fall, looking to squeeze those traders out.
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Support & Resistance
| KEY LEVELS | |
| Daily R2 | 10711 |
| Daily R1 | 10667 |
| Daily Pivot | 10603 |
| Daily S1 | 10559 |
| Daily S2 | 10494 |
| 200 Day EMA | 10365 |
See you again tomorrow
