If trading above 3769 then price is trying to rise up towards the Weekly 50% level @ 3837, as part of a 5-day high breakout and rotation upwards"
Premium Trader
SPI Weekly and 5-day pattern
As per last week's Report ( Weekly).....
"The 3 day -cycle will be the trend guide @ 3763....If there is a 5-day high breakout, then price is moving back towards the July 50% level and Weekly 50% level:- resistance"
The reversal into the Weekly 50% level played out precisely, but the UP move this week had to be confirmed with a 5-day high breakout, as there wasn't any higher timeframe support to swing the market back upwards.
Based on this UP move and back into resistance levels, it is unclear whether the SPI will continue up, but that will depend on US markets.
Often price will breakout of the 3-day cycle but then move into a 2-day stall (consolidation pattern) until the 3rd day, before price continues with the 'new' cycle.
Because price is hitting resistance and not above resistance. I favour a stall/ consolidation pattern at this stage.
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