The third big test of 2869 yesterday has failed and this morning the battle above showed sellers still in charge. Tweets fly all around showing traders hopeful for a bounce. However, we are sitting now at areas that buyers hope do not fail – 2857-2854. The 2882-2889 area is the resistance region of note for the week and the close here for Friday will be quite important. Remember that 2836.5 is the weekly close that holds strength and yesterday we bounced sharply off that level. Buyers hoping for the BTD (buy the dip) event to hold are still presenting though their voices are still a bit quiet here. For another day, wider whipsaw ranges are likely here.
RECAP -Seller stronger below 2872.75. Buyers want to hold support of 2836.5 as the weekly candle closes become important again. 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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