Yearly and closing above the Monthly S1
at 750. Yesterday saw price move up and test the Cloud
from below after which it sold off and closed right at
the important 750 level. Today again we see price
advance and is currently by the at 825.
Bulls would like to see a return inside the Cloud on a
closing basis and also a close above the Weekly pp
at 930. It would be natural, in such a scenario to
see some consolidation and a cross
before price tries to breach the Cloud to the upside
and reestablishes the uptrend.
Another scenarion is to see price consolidate below
the Cloud and above the 750 mark, to find bull strength
to make a move up.
To the downside, if price fails and close below the
750 handle, chances are we will see price move towards
the 670 and possibly a retest of the
current low. Even that would be natural in a process of
carving out a medium term bottom. Thus, the 750 level
is the line in the sand right now, to keep an eye on.