The second test of 2869 this morning is likely to create the environment for another attempt to bounce into lower highs. We have clear lines in the sand now that we have that separate the buyers from sellers at the present time. 2882-2889 is the current resistance region and 2862-2869 holds currently as support. Buyers hoping for the BTD (buy the dip) event to engage are still presenting though their voices are a bit quiet here. Wider whipsaw ranges are likely here.
RECAP -As with yesterday, sellers want to keep us below 2882.75 and stay there. Buyers want to hold support of 2868 today. Breaches of either of those levels is likely to tip the balance of strength in the direction of the break.
Divergent action still sits below the movement of price on both sides of the trades – long and short – but traders are still looking at deep support edges to bounces.
****OUR METASTOCK MAP IS NOW SECURELY ENGAGED SHORT IN THE SWING MOTION BUT THE FORMS SUGGEST TAKING PROFIT AS IT TESTS LOWER AND ADDING BACK AT KEY AREAS OF RESISTANCE.
DEEP DIPS AND WIDE SPIKES IN PRICES ARE ALWAYS A STRONGER PROBABILITY WHEN THE SWING SIGNAL IS AT A CROSS CURRENT TO THE TREND. O
SWING SHORTS OPEN AT 2936.5, ADDITIONS ARE AT 2921, 2917 STOPS ARE VARIABLE BUT BUYERS ARE MUCH STRONGER ABOVE 2929 NOW.
PRICE CONGESTIONS NEAR 2885, 2856, AND 2841 REMAIN THE SWING TARGETS
Divergence and defense of recent lows tell us buyers are still in the fight as sellers engage actively Here’s a link to the METASTOCK software
IF YOU DON’T JOURNAL YOUR PROGRESS, YOU SHOULD – How about finally starting that trading journal?
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