As often can happen at these areas, price found temporary support where the bulls came in and took price back to the support-turned-resistance of September and where we had our short position triggered based on a pullback strategy.
The bears have since taken control of the market and, as of yesterday, pushed through support and are now setting up for that breakout we first anticipated back on March 5th. We do, however, still need to apply patience and wait for the market to break and close below the March low to confirm the breakout and a potential trend continuation. Price has made a strong move in the direction of the bear trend but we are only in the Asian session. The picture could look very different by the end of the trading day.
Long traders trying to pick a button of the trend in this month of March will now be seeing price move against them. If stops are non-existent or constantly being move further away as the bears get closer, then this could end up being one of those journeys with a bad ending. It is the undoing of many who fail to grasp the concept of the trend is your friend.
If that breakout is confirmed, then we will be looking to add positions the the pullback triggered earlier this month.
We would now like price to make a neat and linear move to the next key of 100.