Bull train consolidating
Today’s session was straight forward after our first two long scalp trades had failed in the morning. When the day session opened, price immediately broke below the hourly bull pennant/triangle and it suggested more downside ahead. By 10:00AM, the first hourly candlestick bar had closed and it engulfed the previous 20 bars; making it a lower high reversal setup. As we noted in the intraday commentary, as long as bears defend/reject the 61.8% fib retracement level of 2104.78, then the targets are 2088, 2085 and 2082. The bears stepped up their game today and we were fortunate to enter our shorts at 2105 for an initial risk of 2 points for 10 reward. That trade turned into a trailing winner and we still have 1/3 of the short position left. In addition, the majority of the scalp short trades worked out well from 11AM to 2PM where we shorted the downtrend resistance line and the standard 5m 8ema +20ema micro bear train.
What’s next?
Daily closed at 2096.25, this is the 10th consecutive close above the daily 200SMA. Another fun fact, it’s been 25 sessions above the daily 8EMA. Bears tried for a bearish engulfing close, but they failed and it turned into a spinning top candle.
Amending last night’s hourly 50SMA bull train support to daily 8EMA, in order to have a better representation of where the bulls have to hold.
The immediate targets are still 2120 and 2134 as long price holds above the daily 8EMA 2084.
For short-term bears: breaks below 2084, then immediate targets are 2075, 2064, and 2055.
--
Our Swing Position
-Nothing has changed
