In the Globex session the buyers were dominating. The price was grinding up all night. The momentum was picked up by the RTH buyers from the getgo but they failed. The sell side took a turn and dominated the entire RTH session. The sellers showed up at 61.8% of the downside swing. The buyers might have a chance if they continue a grinding up action. But they got exhausted moving too fast right into the resistance. Sometimes I think such moves are originated by the sellers themselves who want to sell at specific price level. They just need to push the price and suck in new buyers creating enough liquidity.
From the market structure perspective no changes. As I mentioned in the previous post when the bias is neutral and the scene of crime is in middle of the projected area (the box) both sides make swings trying to run stops and create momentum trades.
What to expect:
1. If the buyers manage to hold the last 2 days low they have a chance to retest today's high. In case of a strong upside momentum they may have a chance to retest the recent high. It is within a day reach base on the current volatility level.
2. Loosing the recent days low would open a door to retest the bottom of the balance. It is too early to say but from a price pattern perspective we may have a channel forming (shown on the chart) that may serve as a bull trap.
03/26/2019
From the market structure perspective no changes. As I mentioned in the previous post when the bias is neutral and the scene of crime is in middle of the projected area (the box) both sides make swings trying to run stops and create momentum trades.
What to expect:
1. If the buyers manage to hold the last 2 days low they have a chance to retest today's high. In case of a strong upside momentum they may have a chance to retest the recent high. It is within a day reach base on the current volatility level.
2. Loosing the recent days low would open a door to retest the bottom of the balance. It is too early to say but from a price pattern perspective we may have a channel forming (shown on the chart) that may serve as a bull trap.
03/26/2019