A typical week for August has passed, inner Weekly bar, the market is very patient, buying time, and the bullish momentum we witnessed on July, touching the upper Bollinger Band every week – has gone.
Remember that at the middle of the range the most random behavior appears, and it is very difficult to find a good trade idea in this case on the Daily and above timeframes. The opportunities are mostly lying at the edges of a range.
In this case, taking out the Weekly Low which is an inside bar, and closing the Daily bar strong, and a thrust up the day after can signal that the market has tested the lower side of the range and is on its way to the upper side of it. Best if this happens while leaving the open gap currently at the levels 8592.15 till 8600.45 still open (narrower).
Markets often do that, as part of manipulation to take weak stops (in this case at the Weekly inner bar’s Low) that were put without consideration of the Weekly price action.
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. Bear in mind that since the market took out the 2 Month LHBL level, we haven’t got any re-accumulation to get higher.
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.