Channels, price/volume action, s/r areas indicate we are ready to take another charge at the ~300 supply area. This Time Is Different™ because the medium term and long term fractals may be aligned as bullish.
Of course there was a strong selling reaction last time we hit 300. Lots of history there plus it is a psychological level. What happens next is what's important. Do we double top out of this and crash back down into the trading range, or march towards an ATH? Based on the recent "background" I'd say we have a great shot at breaching the supply area:
1) Stopping volume / selling climax in January
2) Test of supply at 220 succeeded (no sellers left down there)
3) Sideways, low volume consolidation period from April-June. Often signals the end of a trend.
4) Breakout of the 18 month bear trend followed by a rally to 315.
5) Increasing buy volume after the breakout.
This is a dangerous place to short IMO! Don't mess with this bull.
Of course there was a strong selling reaction last time we hit 300. Lots of history there plus it is a psychological level. What happens next is what's important. Do we double top out of this and crash back down into the trading range, or march towards an ATH? Based on the recent "background" I'd say we have a great shot at breaching the supply area:
1) Stopping volume / selling climax in January
2) Test of supply at 220 succeeded (no sellers left down there)
3) Sideways, low volume consolidation period from April-June. Often signals the end of a trend.
4) Breakout of the 18 month bear trend followed by a rally to 315.
5) Increasing buy volume after the breakout.
This is a dangerous place to short IMO! Don't mess with this bull.