A gap up Globex action set the tone for the day session. When the market shows its hand It is best not to fight it. No matter what you think about the reasons. In the morning, I read an article where some UBS analyst had warned the investors before the opening not to trust China data, which was believed the reason for uplifting mood. It was definitely something to consider and be cautious before going long at higher prices. One of my expectations was to see if the gap gets filled. An island structure is a weak structure. However, the price action showed that the Algos are aggressive and buy pullbacks. That was enough to understand who is in control and tag along.
From the market structure perspective nothing has changed. As seen on the chart the price is moving within the predefined balance targeting to retest the balance top. The top is a resistance until broken. Considering a strong rejection from that level I anticipate that sellers will be active on a first test. We may see a double top pattern in play. The market is not obligated to breakout and keep moving higher. The price can remain in this balance for many days similar to the balance below.
04/01/2019
From the market structure perspective nothing has changed. As seen on the chart the price is moving within the predefined balance targeting to retest the balance top. The top is a resistance until broken. Considering a strong rejection from that level I anticipate that sellers will be active on a first test. We may see a double top pattern in play. The market is not obligated to breakout and keep moving higher. The price can remain in this balance for many days similar to the balance below.
04/01/2019