The Week Long Tease
Today’s session was just a classic inside day;
the first two hours of the day session already defined the range high vs. range
low with the hourly candle wicks that aligned with the levels from yesterday. Remember,
this entire week the market has basically been trading inside the daily shake
zone levels of 1907.25 vs.1851.25 from the Tuesday KISS report levels. The
market has consolidated and the hourly triangle range is getting tighter for
the imminent breakout/breakdown. Overall, it was a pretty simple session as day
traders had defined risk vs. reward scalps based on the levels we had provided
intraday.
What’s next?
Daily closed at 1882 and it was a doji candle within yesterday’s
range. Price contraction is generally followed by price expansion which means a
fast and furious breakout/breakdown should be arriving very soon. Make no mistake;
the market can continue this consolidation as long as it likes until the key
levels such as 1907.5 or 1851.25 breaks decisively.
There are still no immediate targets or high probability
projections as the market continue this shakefest. Our educated guess/bias
remains the same, it favours short-term bulls as the chart pattern and
structure of this temporary basing pattern suggests the daily 20EMA target to
be hit.
Levels for breakout:
break above 1900 with immediate follow through to 1907.50 opens up the
immediate target to 1915 (daily 20EMA) and 1927.
Levels for breakdown:
break below 1865 with immediate follow through to 1851 opens ups the
immediate targets to 1837, 1820 and 1805.
Tomorrow is the weekly and monthly candle closing so it
could be a wild ride as both sides duke it out. Last week’s candle was a bull
hammer that was a sticksave from the multi-year major support and so far the
bulls have failed to do a straight continuation to the upside. With the current
failure from the bulls to do a straight continuation rally, it favours the accelerated
weekly bear train in the coming weeks as long as major resistances such as 1920
and 1940 do not get decisively taken out. Again, we’re looking forward to
next couple weeks as the market gets out of this shake zone so we get some easy
trending moves riding the train.
