Lets begin with to recap my views from last weeks update.
1. Market is in a clear one-sided trading condition, where bulls have full control. Prices are bought relentlessly, with no pullbacks. Forces traders to always buy "at the top", which is a great indication of a strong move with several more swing highs to come.
2. Trading near the previous ATH triggered by the pandemic, should be a good psychological resistance for a bear trap. Saying trap since I believe there is no major short coming from these levels.
So adding additional information from this weeks trading.
1. We had our first real bearish close since the previous low in July this Wednesday, this is the first sign of weakness, however this reversal attempt was bought relentlessly like expected.
2. Thursday and Friday are forming a continuation trade for a measured move up from Thursdays spike shown in the intraday chart. Ending session on Friday looks like a possible confirm of this trade.
This upcoming week:
1. Observe price action on Monday open, I would expect the market to open higher and would like to see bullish price action straight from the open to confirm my views on this continuation trade. I will then look for a pullback through a first entries stop-loss level for entry.
2. Trade ONLY LONG, there is currently no price action to confirm a short around these levels.
3. Observe momentum in this move, I do suspect it can have some pullbacks to work with, so better be patient with entries, ideally on first entry stop-loss zones.
Moving forward, I do believe there is a potential short coming. I want to see the momentum in this current continuation trade before so will need to revisit this idea next week. But the way im seeing the next phases of the market to unfold:
1. Current continuation trade towards 3410 goes with low momentum
(low momentum being = move have bearish price action, basically there is room to scalp money on the short side and breakouts to new highs also pulls back)
2. We breakout to a new all time high.
3. Breakout has no significant follow through.
4. We see a major bear trap leading down below 3325.
5. This is a zone for bears to cover their short positions from Wednesday, and bulls will enter new longs. Expecting market to be become one-sided and form a new major up move.
But at this stage its merely a theory, my focus is on this week since I mostly trade intraday. Will revisit this theory later on.
1. Market is in a clear one-sided trading condition, where bulls have full control. Prices are bought relentlessly, with no pullbacks. Forces traders to always buy "at the top", which is a great indication of a strong move with several more swing highs to come.
2. Trading near the previous ATH triggered by the pandemic, should be a good psychological resistance for a bear trap. Saying trap since I believe there is no major short coming from these levels.
So adding additional information from this weeks trading.
1. We had our first real bearish close since the previous low in July this Wednesday, this is the first sign of weakness, however this reversal attempt was bought relentlessly like expected.
2. Thursday and Friday are forming a continuation trade for a measured move up from Thursdays spike shown in the intraday chart. Ending session on Friday looks like a possible confirm of this trade.
This upcoming week:
1. Observe price action on Monday open, I would expect the market to open higher and would like to see bullish price action straight from the open to confirm my views on this continuation trade. I will then look for a pullback through a first entries stop-loss level for entry.
2. Trade ONLY LONG, there is currently no price action to confirm a short around these levels.
3. Observe momentum in this move, I do suspect it can have some pullbacks to work with, so better be patient with entries, ideally on first entry stop-loss zones.
Moving forward, I do believe there is a potential short coming. I want to see the momentum in this current continuation trade before so will need to revisit this idea next week. But the way im seeing the next phases of the market to unfold:
1. Current continuation trade towards 3410 goes with low momentum
(low momentum being = move have bearish price action, basically there is room to scalp money on the short side and breakouts to new highs also pulls back)
2. We breakout to a new all time high.
3. Breakout has no significant follow through.
4. We see a major bear trap leading down below 3325.
5. This is a zone for bears to cover their short positions from Wednesday, and bulls will enter new longs. Expecting market to be become one-sided and form a new major up move.
But at this stage its merely a theory, my focus is on this week since I mostly trade intraday. Will revisit this theory later on.
