Last time I wrote about the longer term Vomiting Camel Pattern which had gotten us to where we were at that time. This time I’d like to concentrate on the shorter term action. The key feature is the breach on the upside of the Dec 2017-to-date Downtrend (currently 6.3513).
We’d formed some Bullishness as we’d fallen to the Lower Tine support of the 2017 Schiff Pitchfork (currently 6.2520) and whilst taking into account the New Year Holiday’s we’d managed to form enough support to stage a pullback up, almost to the high Feb as at the time of writing.
If we do form a second consecutive close over the Downtrend then we’re in pretty clear water till we reach the recent 50% Fib resistance at 6.4664. Above that is the 50% Fib of the 2014 – 2017 move at 6.5005 but that would also be close the descending Medium MA resistance (currently at 6.5067) and may be a big ask.
On the downside, under the Lower Tine we have some mild support at 6.2494 but we then have a Gap till we reach the Bullish Congestion zone 6.2110 – 6.1780. An interesting few days ahead to see if the recovery will continue... Given recent action and the turn up in one of the MAs, I’ve decided to move the bullet point above into Mildly Bearish from fully Bearish.
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