Very Tight Range
In my last post I had said, “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.”
We are in exactly the same situation for Monday, except the range is even tighter – with a very thin sideways consolidation Friday. The chance for an upside break is 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 operative. 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. My bet is the top of the range at 27,600. Watch for a downside failure through the lower line at 26,600 though – that would be quite bearish short term.