Consolidation continues
Today’s session was a bit tough as the bears gave us a clear cut breakdown with the first large hourly bear candle by 10AM but failed quickly after. The context of the hourly chart at the time was a lower high reversal setup combined with a head and shoulders pattern. During the next hour, the bulls managed to retrace half of the previous large hourly bear candle. It was so fitting that the bulls managed to form LOD at the important daily 8EMA support from last night’s report. With that sticksave at 2084 and follow through to the 50% fib retracement, bears had lost all the momentum they gathered from the previous hour. It is very fascinating and impressive that this bull rally from the end of September has never closed below the daily 8EMA yet and bulls had sticksaved at that support level for 5 times already.
What’s next?
Daily closed at 2095.25, this is the 11th consecutive close above the daily 200SMA. It closed as a doji candle, which means both sides are indecisive right now so the bull train consolidation continues.
The immediate targets are still 2120 and 2134 as long as price remains above the daily 8EMA 2085.
For short-term bears: breaks below 2085, then immediate targets are 2075, 2064, and 2055.
Tomorrow is an important session for both sides: 6 consecutive green weeks for the bulls and potentially a surprise attack from the bears with a top tail rejection candle for the bears. Currently, the market has rejected the bull train so far on the first try at the major resistance confluence level (red trendline). This could the time for bears to surprise us and prove that they are not mythical creatures.
