The market has opened the passing week once again with a gap up, continuing into a new all time High, but eventually on last Thursday and Friday reversed with an open gap by itself (not a good sign for the bulls) and closed the open gap in the first place, closing on the 8 EMA short term sentiment line, both are clear signs of weakness.
Another important indication was that the Monthly bar, although getting very near at last Wednesday) still hasn’t touched the upper Bollinger band, another sign of weakness.
The Weekly bar though printing a HH HL bar – closed as a bearish Pinbar.
Taking out the Weekly Low is breaking a bearish Pinbar down, and may lead to testing again the wide open gap below, at 9217.95-9250.35. In order for that to succeed, the market needs to take out the Daily swing Low at 9372.55 right after taking out the Weekly Low -without a correction up in between (i.e. without a Daily HH).
The current price action of last Thursday and Friday suggests staying in that range for the first days of the coming week.
Taking out the last 4H bar’s High at 9444.3 is a bullish setup to reach the level of 9498, very closed to the Daily High at 9505.35 and the open gap above. Taking out that High within the same momentum (without a LL on the 4H bars) is a sign of strength that may yield another accumulation in that Daily Swing range before continuing the big move up 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.