Bullish Short Term Pattern
From yesterday… “This is a Continuation Pattern that shows a high likelihood of hitting the top of the range over the next 2 sessions. It’s actually a beautiful formation because the range is so small – a great place to guide market-based entries and exits. Long above, Short below – it’s usually that simple.” We are still forming this pattern, which further solidified today. Very narrow range as shown in the 39 Minute Chart. I could be surprised, but I would say the likelihood of an upside break to the top of the channel is very high.
“…In the Daily Chart, we see the lone bar poking up into the upper range – clearly a reach for the top of the channel at 27,600. There is enough bullishness in here to warrant a continued move to that level.” Still in the same situation as Wednesday. Watch for the range breakout.
The Consolidation that is marked in the 39 Minute Chart is classically bullish where chart reading is concerned. All we have to do is watch the boundaries to determine where the market could end up Friday. My bet is the top of the range at 27,600. Watch for a downside failure through the lower line though – that would be quite bearish short term.