With no catalyst for the market until Thursday and Friday's economic reports, we may continue to consolidate along the 5-day MA with low volume today (Tuesday) and Wednesday. However, I'm slightly bias for a bullish move to the previous high this week for two reasons.
1) According to the 30 minute chart, we have a lot of nested inverse head and shoulder set-ups confirming that the bulls are building nice liquidity for strength and a nice move to the upside. Nested IH&S set-ups also allow the sellers to get squeezed out by forcing them to sell at a lower price down to a strong support level established by the buyers. We can see this at every head fomation and small move up from every right shoulder grab to the upside.
2) If the bears are going to move further down, there first needs to be a retracement to the upside (bullish) to build more liquidity for a stronger advancement down. The best retracement for the bears would be a re-test at the previous high, respecting resistance and strengthening this area as an area of supply. Then, on the way down and after the neckline break there is also more larger liquidity to grab on the left and right shoulders. Until then, bears are in a weak selling continuation and trend exhaustion. So, Unless we have a supporting catalyst, I honestly do not feel comfortable shorting this until we break below the 5-day MA and retest it at resistance, and if we do I will only place puts for quick entries and exits until the 20-MA catches up to price action for a retest. We have a way to go before we reach that point. For now, if the bears want go further down, they will need a nice retracemnet to the upside first. (More bullish confirmation)
I'm slightly bias for a bullish move but is prepared and in position for a move for both directions. Pre-market analysis is great but once we're in the intraday, the market rewards those who are patient and trade what they see. LET'S EAT!!!
1) According to the 30 minute chart, we have a lot of nested inverse head and shoulder set-ups confirming that the bulls are building nice liquidity for strength and a nice move to the upside. Nested IH&S set-ups also allow the sellers to get squeezed out by forcing them to sell at a lower price down to a strong support level established by the buyers. We can see this at every head fomation and small move up from every right shoulder grab to the upside.
2) If the bears are going to move further down, there first needs to be a retracement to the upside (bullish) to build more liquidity for a stronger advancement down. The best retracement for the bears would be a re-test at the previous high, respecting resistance and strengthening this area as an area of supply. Then, on the way down and after the neckline break there is also more larger liquidity to grab on the left and right shoulders. Until then, bears are in a weak selling continuation and trend exhaustion. So, Unless we have a supporting catalyst, I honestly do not feel comfortable shorting this until we break below the 5-day MA and retest it at resistance, and if we do I will only place puts for quick entries and exits until the 20-MA catches up to price action for a retest. We have a way to go before we reach that point. For now, if the bears want go further down, they will need a nice retracemnet to the upside first. (More bullish confirmation)
I'm slightly bias for a bullish move but is prepared and in position for a move for both directions. Pre-market analysis is great but once we're in the intraday, the market rewards those who are patient and trade what they see. LET'S EAT!!!