Yesterday the bulls showed up and defended the critical breakout level from the beginning of the year. Their reaction to the lower prices can be seen in the profile as a single print of TPOs. Just like a low volume zone, we can draw knowledge from this area. The market spend very little time trading in the area as buyers snapped up the perceived discounted price. We therefore can expect those same buyers to show up on any attempt to revisit these levels. If they do not show up and defend the lows, it’s our cue something has changed, and we need to reevaluate the overall tenor of the market.
I’ve also marked 1457 as a key level. Not only did the overnight session top out just below this level, there are multiple levels of confluence here. Where we sustain trade as the week progresses will be a solid cue to the direction of the market in the swing term.
Hope you closed your CEDC position. Moody’s downgraded their bonds this morning.
I have not, trying to exit gracefully. 10% winner turned 6% loser.