Three bullish candles above the near-term trendline make another attempt to hit 20k a likely scenario
Last Thursday’s Bullish Hammer provided the initial clue that we were indeed seeing the volatile whipsaw up at the highs, as previous anticipated. However I initially though we may hold above 19,600 before gains resumed but the deeper pullback towards 19,000 turned you to be a more reliable level.
Friday then provided a wide-bodied (volatile) Doji to add credence to the previous Bullish Hammer, with the low respecting a bullish trendline. Monday’s Candle provided a bullish follow-through to complete what I would consider good enough to count as a Morning Star Reversal, in line with the bullish trend.
At this stage I am seeking bullish setups to trade up to the 20,000 target suggested a couple of weeks ago. Today’s price action has already seen an approximate 50% retracement of yesterday’s open-close range, so we could consider a tight stop and bullish entry to assume direct gain during London and US trading sessions. Risk sentiment is back on the able and we also saw swing los across US Indices yesterday which tips bullish continuation into our favour in the later session.
Intraday price action is currently bearish but we may be able to find support around 19,400 to consider bullish setups and consider a wider stop below either the bullish trendline or 19,000, to assume an eventual rally towards 20,000.
Personally I would take the break of the bullish trendline as a good enough sign of a deeper correction from the highs but the closer we get to this level without breaking it the better the reward to risk ratio becomes for a run towards 20,000.