Influenced by the international geopolitical landscape, the market staged a modest rebound from the low of 4350; for the time being, we designate this level as the bottom of the current correction. If an upward trend cannot be effectively determined by Friday, the market will likely fall back.
Currently, the resistance level indicated by the moving average system stands at 4480. If the market fails to decisively breach this resistance, the overall sentiment will remain bearish, implying that 4350 may not necessarily mark the ultimate low point of this correction.
On the 1-hour chart, the market has broken out of the sideways-to-downward channel that characterized Thursday’s trading; after breaching the middle band, it pulled back during the European session to retest and confirm that level. The key point to watch in the US session is the head and shoulders bottom pattern shown in the chart. If it can hold above 4400-4450, it will retest the resistance level of 4480. Only a strong breakout will give the bullish momentum a chance to take hold.
Conversely, if a decisive breakout fails to materialize, the aforementioned resistance zone remains a viable area for initiating short positions.
More Strategies ā¤ā¤ā¤ā¤ā¤ā¤ā¤ā¤ā