I posted a chart last night with 3 levels to watch for a relief bounce. The first zone was hit this morning and price reacted nicely offering a quick tradable bounce. The bulls need a follow through of todays price action, but will have to resolve the 12800 level first. As you can see from the chart the 12800 area is an important level. Price bounced off the level at least 5 times since the beginning of the year and then broke down through it on March 3rd, reclaimed the level on March 10 and bounce 2 more times since then. Today price flushed below the level again only to close back on it. Suffice to say the bulls need price to stay above this level and bears need it to stay below it. The close of the weekly candle tomorrow is important as it should give us a clue where price is heading.
Comment:
Bulls took the day but we will not know if this was just end of the day short covering into the weekend or something more until we see if it can follow through next week.
