Currently in an ascending channel, steadily increasing price with low volume profile worth keeping an eye on. RSI currently overbought on 4h, almost overbought on 1 day and 1 hr. We might see a slight pullback to ~3900 area with sideways action until we hit our downward trend line at around the 3970 mark. If volume is picking up by this point we may break through this down trend line continuing a push through the red resistance zone in the channel. If we can break through this zone, look to take some profits between 4350-4400 before a minor pullback and then possible continuation.
If volume doesn't pickup, there's a chance we hit the downward trend line and continue following the line down or get rejected by the resistance zone. If we break down through support at ~3815 we may break to the next lower down trend line to ~3600 and then retesting the major support area around 3500 a third time.
My view is that we're heading to 4400, bar any fundamental events. The 4100 resistance will turn support for the next rally up.
Comment
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Ok great we've broken to the upside. I maintain a target range of ~4400.
So we bounced off minor support at 3880 and short-squeezed through the resistance zone. Cleared this zone and hit a previous resistance point at ~4200 for some minor profit taking.
If shorts continue to be squeezed and we break through 4200 on the next run up, we'll see profit taking at ~4400 and then reevaluate the position.
Trade closed: target reached
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Closing out this idea. Target reached. Take some profits. Should expect a small retrace here. Will post a new idea for the update.