So far this week is resulting in follow through buying from the wedge
reversal which set up two weeks ago. However the weekly chart has been in a tight trading range, which decreases the probability of a strong breakout without a pullback first. The wedge
is likely to lead to two legs sideways to up, even if only small. The first bull target is the 1.18 double top
and start of the bear channel
. If instead prices stall at the 1.145 lower high, the bears will likely get a larger third leg down and test of the bull breakout gaps below, forming a larger wedge
. The bulls need a series of strong consecutive bars over the next few weeks to convince the market the low is in. If instead there are tails above bars (weak closes), and not so great follow through - expect the heavy two sided trading to continue.
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