Another HH HL Week, with deep testing of the lows has passed, and we are almost in the same situation. Another Weekly bullish pinbar, still in a high momentum Weekly move up. The Creeping uptrend seen as a result in the Daily can be either a sign of weakness, because of the shortening of the thrust – this is the second Weekly bar that doesn’t touch the upper Bollinger Band, which means a loss of momentum. Or, vice versa, it can be an accumulation on the way up (i.e. the market is relatively very strong that its correction is of a Daily scale, not higher).
Currently we are still in the previous Week’s pinbar bullish setup, and the current target is 8904, inside an open gap held since March 2015, levels of 8891.3 till 8937.75. Closing this open gap (reaching the level of 8937.75) and/or reaching the All time High at 9119.2 – both can be triggers for a considerable monthly correction down, as since the market took out the 2 Month LHBL level, we haven’t got any re-accumulation since the Monthly reversal up of March 2016.
Again, the High at 8844.8 (and probably the next High at 8849.75) are going to be taken out within the current Monthly momentum up. Both are within the distance of the potential thrust above the Weekly bullish pinbar’s target.
Pay attention also to an important resistance on the way up, the 84.5% retracement level at 8763.7.
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.