Bulls continue to push price up hitting close to 168 yesterday. Bears dropped a bomb towards the close of the Asian session but bulls recovered just this hour.
The move is a good signal for entry at 167.50. A conservative target would be 168. Break of 168 is highly possible.
Yesterday’s trade ->
Bulls has successfully marked higher high and higher low in the dailies. We will see UK’s GDP Data at 2pm (GMT+8). It is expected to be bearish. Any correction downwards would be an opportunity to buy.
Bulls protected 165.30 last Friday and managed to push back beyond 166.00 but eventually closed flat at 166.00.
The bearish head and shoulders pattern seem to be intact. Neckline remains at 165.30 with initial support at 164.75 and an eventual target of 164.30. Be wary of whipsaws as this is most common.
Asian session was mostly sideways but we saw a bearish move at the start of London session. The move has formed a right shoulder. This bearish head and shoulders pattern has a neckline of 165.30. The break of it will bring us to roughly 164.00
Last night’s bullish triangle failed. It didn’t take too long to realize that since the move was already weak to begin with. Bears took over just before US’s release on PPI and Unemployment.
Dailies still show higher high and higher low except for yesterday’s low. Price didn’t close above open. There’s a sense of bearishness here.
Bulls may try to break 166.80 but I do have my doubts especially the weakness of the breakout yesterday as well as the huge fall from 166.80 to 165.30.
Previous day’s low of 165.30 may be an area to buy but a breakdown of that price level can have a lot of momentum to push to 164.00.
UK’s GDP Data was negative and it didn’t even spark the bears to take the lead. This discounts possibility for price to create new session lows for a bullish entry.
Price has completed its triangulation and it is quite ripe for a breakout.