The market seems to have found previous resistance that has been tested multiple times in the past year. This area acted as a support level when the sell-off started back in March of last year and it has now run back into it multiple times.
Every time we get nearby the market seems to stall out and begin to chop sideways, not really making any significant moves.
That's why it seems as if the market is preparing to have an aggressive break and finally hold above it.
As you can see from the chart above the 200-day moving average is now beginning to curl upwards and the deeper retracements we have created have all been higher than the previous, i.e. higher lows.
The current prediction would be a break above this level, and we can possibly see a run into the 430 area again as we did in August of last year.
At the time of writing this, we are only a few percentage points below the level, and we are right above our 50-day moving average.
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