The setup remains the same inside the range…
As I was saying in my last post, a breakout of the old bearish trident channel (at 1359) led to a a quick move and a run for the top of the range at 1375. We got a touch there after triggering ST trend line resistance stops, and now are seeing a pullback on profit-taking from hitting that S&T target at 1374/1375
The pros left the bear stops in place above 1375, but they are still there and a push above that line would trigger buying as bears cover and momentum buyers enter the breakout into a new range.
The real controlling structure here is the range between 1319.75 and 1375. Support inside that structure is at; 1359 area (where the bullish trident was broken), the rising bullish trident channel bottom (light green trend line on 60-min chart above) and the primary trend support at 1327.75, which lines up with ST/VST support trend lines. Above, we have a gap at 1372.25, the resting bear stops above 1375, confirmed resistance at 1379.75, and then a resistance void up to 1405 area.
Stops and Targets algorithm nailed the target at 1374, then switched to resistance at 1375 in an uptrend. If 1375 is broken to the upside, any remaining countertrend bears probably want to get very defensive. Otherwise, the ST/VST range remains intact with the targets mentioned above coming into play. Macro bullish uptrend remains intact on any pullback > 1319.75
Have a great weekend all…