The bull flag and election of the bullish reversal last week proved be too strong, as price screamed up to WR3 and through a 2 yearly pivots, no mean feat! Although I expected a bullish bias and initial rally, the extent of the rally took me by surprise, as did the lack of a serious pullback to enter long. That is what stop losses are for.
There has been some trade war escalation over the weekend but futures will open well above the weekly pivot.How they respond should be a good indicator to the markets opinion about the seriousness of the trade war, as a strong dip down below the pivot by US open will change the bias to bearish and hopefully open up a route to the bottom end of the broadening formation. If price holds above WS2 this week and in the coming weeks, which is at the 25800 area, I expect another strong rally. This is because 25800 was a previous reversal that became support as the base of the bull flag. If there is no pullback and price holds above the yearly pivots and monthly bullish reversal at 26616, we are game on for another big multi month rally.
There has been some trade war escalation over the weekend but futures will open well above the weekly pivot.How they respond should be a good indicator to the markets opinion about the seriousness of the trade war, as a strong dip down below the pivot by US open will change the bias to bearish and hopefully open up a route to the bottom end of the broadening formation. If price holds above WS2 this week and in the coming weeks, which is at the 25800 area, I expect another strong rally. This is because 25800 was a previous reversal that became support as the base of the bull flag. If there is no pullback and price holds above the yearly pivots and monthly bullish reversal at 26616, we are game on for another big multi month rally.
