Another week of consolidation has passed, this time, the weekly bar looks more bearish that the previous one. But, much more important is the fact that it kept the HL HH sequence since the big bounce three weeks ago.
Pay attention also to a sign of weakness: the passing week’s bar didn’t touch the upper Bollinger Band, something that brings much more validity and reliability to valid countertrend signals, something that was very wrong to assume had the weekly bar touched the upper band.
This sign of weakness took place below the most important High around – the 8336.3 LHBL (Last High Before Low), not good news for the bulls either.
By the price action of the last two weeks, price will most likely take out the previous Weekly Low at 8134.3, and should confront the support level of 8116.1.
A good short term bearish opportunity might come if by the first day or two of the coming week, a small correction up appear, rally that barely reaches 50% of the passing week range. Then, signs of weakness followed by good bearish signal on the Hourly/4H charts can start a move down below the previous week’s Low at 8134.3. Remember that prices should find support near 8116 so that for this above mentioned move it is the last target. Prices can easily climb back right after to expand the monthly bar from above and re-confront the Monthly LHBL at 8336.3 again.
Disclaimer: Anyone who takes action by this article does it at his own risk, and the writer won’t have any liability for any damages caused by this action.