WMS-What the trend has told us to look for at the current levels
WMS has a significant mark-up phase if it can break supply, and hold demand above the $111-$113 range.
First, let us take a look at the red-on-red filled candle (highlighted yellow) at $111.11 open from 02 March 21
When back testing the resulting move following a breakthrough of similar candle-based indications, the price action has continued into a steady uptrend. These candles do not often require a re-confirmation of demand within this trend, following a confirmed break. If reconfirmation of lack of supply is needed at alerted levels, it is often filled as a level of confirmed support.
Below are examples of moves following this candle-based strategy. These candles have indicated a nice base set up for continuation throughout the current uptrend.
A firm break of the top red-on-red candle from the prior uptrend, served as a point of no return for this uptrend.
The prior uptrend set up a similar supply zone as the current trend. Once this level was broken to the down-side, the trend moved to gap down and fill the indicated candles.
These previous set-ups give us a pair of moves that will give good indication of which way WMS will trend.
Short set-up - A rejection of the current formed supply will likely see a move down to test the unfilled red-on-red candles as support at the below price targets.
Long set-up - A break with confirmation of demand will likely trend to the above expected resistance before re-testing supply levels at the break. A true lack of supply break could see an unrestricted move to the top indicated price targets and testing down to the $118-$120 level as mid-level support.
First, let us take a look at the red-on-red filled candle (highlighted yellow) at $111.11 open from 02 March 21
When back testing the resulting move following a breakthrough of similar candle-based indications, the price action has continued into a steady uptrend. These candles do not often require a re-confirmation of demand within this trend, following a confirmed break. If reconfirmation of lack of supply is needed at alerted levels, it is often filled as a level of confirmed support.
Below are examples of moves following this candle-based strategy. These candles have indicated a nice base set up for continuation throughout the current uptrend.
A firm break of the top red-on-red candle from the prior uptrend, served as a point of no return for this uptrend.
The prior uptrend set up a similar supply zone as the current trend. Once this level was broken to the down-side, the trend moved to gap down and fill the indicated candles.
These previous set-ups give us a pair of moves that will give good indication of which way WMS will trend.
Short set-up - A rejection of the current formed supply will likely see a move down to test the unfilled red-on-red candles as support at the below price targets.
Long set-up - A break with confirmation of demand will likely trend to the above expected resistance before re-testing supply levels at the break. A true lack of supply break could see an unrestricted move to the top indicated price targets and testing down to the $118-$120 level as mid-level support.
Comment:
Price has broken into needed range of support. Looking for entry with a close above $109.98 or break up of $111.15
Comment:
Trend Change Alert:
WMS has rejected the current uptrend pattern explained in the original post.
A break below $100 with confirmation, would likely see a downside price target of $88
WMS has rejected the current uptrend pattern explained in the original post.
A break below $100 with confirmation, would likely see a downside price target of $88