Early trend guide is to trade longs above 3960"
"Below 4004 will see a drift back down into 3957"
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SPI Weekly and 5-day pattern
At the beginning of the day I wasn't expecting such a large rally especially on the news regarding RIO.
I was looking for some upward movement based on the 5-day pattern into 3988, with a max move around 4002, once price was trading above 3960.
But,when the first 90 minutes of trading saw the SPI back around 4021, I thought JUNE highs were going to be reached:- 4042
Instead the Spiral top @ 4021 reversed the market, and once back under 4004, the rest of the day was going to struggle, with the expectation that price would move down into 3975.
This week has seen a lot of text book patterns play out:-
1. MAY high resistance moves and shifts higher into June
2. Trend begins from the monthly balance point and breaks Monday's highs:- 5-day breakout
3. Breakout of Monday and expectation of higher prices into Tuesday.
4 Tuesday's 5-days highs random resistance
5. Tuesday's high breakout @ 3965 on Wednesday and continuation upwards into Wednesday's highs @ 4021
6. Thursday:- 5-day high reversal and move down into the 5-day 50% level.
7.Friday?????????????
Text book pattern should continue higher because of the move down into the 5-day 50% level yesterday and bounce.
This results in a higher Weekly close, and around the JUNE highs:- in Theory.
However, it’s a shame that this reversal down today didn’t happen around 4040, as this was the only resistance level on Friday.
And I didn't expect a move back down into the lows again without price hitting any resistance levels in the market today:- 4040-42
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