Let see if we can finally hit my target of 1.22 which I posted on the 12th Oct. This is an important level so watch to see what happens. there are a few possibilities;
1) we smash through this level and proceed to create a new higher high to confirm the longer term bullish trend.
2) the resistance holds and we get a decent sized pull back to get the bears selling before a further bull move to break support and make some new highs then we are back to option 1.
3) the resistance holds which would mean a double top, the lower side of the channel breaks, and we move down to test / and or break the low.
My money is on option 2 for the following reasons:
- The previous low was created by political turmoil which has now stabilised. so with out institutional manipulation I do not see us going back down there.
- The RSI is on the high side so I feel this will need to come down to allow a further bull move. to do this we would need to see a pull back or decent length consolidation.
The RSI is around the 65 level on the intraday time frames which is not quite at the sell level of 70 but it's still quite high. This could mean there is still room for option 1 but if this happens I would expect a sharp pull back high up as the bear pressure grows.
1) we smash through this level and proceed to create a new higher high to confirm the longer term bullish trend.
2) the resistance holds and we get a decent sized pull back to get the bears selling before a further bull move to break support and make some new highs then we are back to option 1.
3) the resistance holds which would mean a double top, the lower side of the channel breaks, and we move down to test / and or break the low.
My money is on option 2 for the following reasons:
- The previous low was created by political turmoil which has now stabilised. so with out institutional manipulation I do not see us going back down there.
- The RSI is on the high side so I feel this will need to come down to allow a further bull move. to do this we would need to see a pull back or decent length consolidation.
The RSI is around the 65 level on the intraday time frames which is not quite at the sell level of 70 but it's still quite high. This could mean there is still room for option 1 but if this happens I would expect a sharp pull back high up as the bear pressure grows.