The breakout from the bullish pennant late last week sparked a continuation higher over the weekend with price reaching the 0.00xx level before hitting supply area resistance which has put a pause on the rally for the time being (unsurprisingly). Note that SCMR signals have been and still are bright green, all of the moving averages are accelerating to the upside, strong dynamic support continues to actively build below the market, and the Ichimoku Cloud remains firmly bullish out in front of the market, all pointing to a continuation to the upside once the current consolidation completes (which looks like another, smaller pennant pattern). That said, the momentum oscillators are getting close to universally overbought, the volume indications remain lackluster overall, and resistance is heavy above the psychologically significant 0.0xx level, so we'll continue to stay patient for a retracement before getting active on the long side.
We will consider a LONG position on a retracement back down to the 0.00xx - 0.00xx area with a stop around the 0.00xx level and a target of 0.0xx.
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