By Claus Andersen
29. April 2020
240 min chart:
LAST WEEK: “Always in is sideways and price has reacted nicely on key support and resistance areas.”
Price finally broke out of the orange trading range. It was also a breakout of the symmetrical triangle. Now price is always in long.
On this four hour chat Price rallied to 11,000- often when we get a breakout we get a measured move to the upside or a 100% expansion of the whole trading range. That would mean at a target area between 11,400 and 11,700.
Still the rally is not as convincing as it could’ve been. In the breakout we get a lot of small bars and hesitation above the breakout area. What we need is strong follow-through.
We have now reached 50% retracement of the entire sell-off probably some are looking to sell here or take partial profits from the longs that they enter on the very low.
Price is always in long and I will look to trade of key support and resistance areas in the next days.
15 min chart:
LAST WEEK: “The trading range is nice enough in that it is not too hard to trade. Still I am watching for that 10.000 price point. As long as price keeps above it, then I am more positive.”
This week the 15 min chart has formed a bull trend channel. Price is respecting the support and resistance lines nicely, making it predictable to trade. Price stayed above 10.000 and is still AIL.
We had the BO from the orange trading range and the symmetrical triangle. On this chart the BO looks good and solid. The was easy to find the trendline and see the setups on the support lines. Holding on to longs into the high of the trading range was harder. My guess is, that a lot sold the resistance and are now left behind. They will have to chase or wait. Chasing will fuel a potential exhaustion. A test of the BO area is likely.
A bit more detailed analysis in the video below.
Support and resistance was adjusted in the latest YouTube video:
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AIL = Always In Long
BO = Breakout
FBO = Failed Breakout
PB = Pull Back