In my last post I shared an idea to watch the wedge and a positive divergence for a potential upside move off the support. It did play out. Unfortunately, it happened in the overnight session. The day session was slow and uneventful. The FOMC minutes released in the afternoon had a muted reaction. The market spent time holding the overnight gains and drifted up until the resistance level is reached.
At this point we need to see a decisive break of the resistance and a rally to the next level.
Alternative scenarios would be:
- continued balancing below 7620-7720 levels.
- a false breakout leading to a sharp rejection, which is ideal for shorting.
10/9/2019
At this point we need to see a decisive break of the resistance and a rally to the next level.
Alternative scenarios would be:
- continued balancing below 7620-7720 levels.
- a false breakout leading to a sharp rejection, which is ideal for shorting.
10/9/2019
Comment:
It appears that the headline led to a liquidation move off the resistance back to the old support. Let's see what happens in the morning...
