SPI rising upwards from Quarterly support and moving towards the 5-day high range, with the potential of a higher close on Friday....Levels of Interest are the two Weekly 50% levels @ 5668 and 5593...
This week's expectation:- once price was over the Weekly 50% level and then the 5-day 50% level, the market-path was to head back towards the 5-day highs. This was reached overnight in Sycom.
Therefore the expectation is that the SPI is moving up towards 5713..
However:- higher open and expectation is that price needs to come down first before moving upwards. (Higher Spiral point)
Like yesterday the Weekly 50% level was used as the first resistance point to trade the 'gap' down, and the same is going to be today. Last week's 50% level @ 5668 is the resistance zone to trade the 'gap'...
Two patterns I'm looking for today after any fade down from open.....
Yesterday's 50% level @ 5633, with matching Dilernia pivot can support the market moving up into the 5-day highs...
Or a move back down in the gap @ 5600 (R44 spiral low) before moving upwards...
Risk level is 5633...
Note: I also mentioned that once it gets to the 5-day highs, we are looking to 'short' the market again.
Keep in mind that the Weekly timeframe is rising upwards from a bottom, and the 5-day high sell is a valid strategy, but each 5-day high will dynamically rise higher each day.
A 5-day high 'sell' is much more valid when the Weekly timeframe closes on its highs (Friday), and then is moving down from a higher Weekly open the following week.
Posts
