Review: Price had moved above the resistance level and was also above the £30.00 round number.
Update: Price has now pulled back to the support level which was previous resistance.
Conclusion: We have to see if the support level can hold price up. We can then look for long trades when the previous high is broken on the daily timeframe.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!
Hi just a thought, I would consider a lower support level of 2671 ... why! if you ignore the recent rise and drop (pumpers and dumpers whatever) and look at the recent bull run below the 2855 mark the 50% level of the rise is about 2571
Then if you look at the bull run back in December and 50% of that run (2420) became an important resistant/support level ... if history is to repeat its self then that 50% mark of that prior bull run might be reused as some sort of support/resistance level, only time will tell.
Good Luck :)
Sublime_Trading
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@mbscon, you are correct the markets often does repeat itself.
At the moment the support level we have drawn in on the chart above is holding but if that level doesn't hold then it may find support at the point which you mentioned.
Previous high/low areas such as the one on the chart are strong support/resistance levels and are one of the first things we look at in our analysis.
We will have to wait and see if price can bounce off this support level.
Then if you look at the bull run back in December and 50% of that run (2420) became an important resistant/support level ... if history is to repeat its self then that 50% mark of that prior bull run might be reused as some sort of support/resistance level, only time will tell.
Good Luck :)