After two Weekly inner bars, the market made a substantial advance towards the targets above. The huge thrust seen over the passing week is mostly due to the fact that the market had made a Weekly LL first, and eventually a false break down.
In the last review I mentioned that bearish setups are less likely to succeed in such a price action, and it is better to wait for a good bullish signal. I mentioned also that only by taking out the Weekly low at Monday there is some chance for the bearish setup triggered at that point of time to work. The market even negated that by making that LL but immediately reversed back up to close the day as a false thrust down.
As for the coming week, we have a very bullish pattern on the Weekly timeframe: An OKR leaning on a sloping Weekly 8 EMA. A thrust above the passing week’s High is the trigger to advance by the same amplitude, i.e. to reach 9100 and slightly above. Notice that yet, this level is lower than the all time High at 9119.2.
As for the way up, the Weekly swing High of 8844.8, made at April 2015 is not a resistance, and should be taken out on the next thrust up. Closing the open gap between 8891.3 and 8937.75 should be a resistance and a trigger for some correction. Notice that the level of closing this open gap is currently sitting next to the upper Weekly Bollinger Band.
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.