8.08.13 “Bulls Buy Recent Weakness”

Yesterday’s Trade Strategy was spot on looking for early weakness with potential support coming in at 1681.00. Here’s excerpt: “Prior Day Low (PDL) 1688.75..So look for this zone to offer some initial support. IF price fails to find support, THEN further downside target zones 1678 – 81 come into play. On the upside, there is initial supply 1693 – 96 zone.”

Price indeed found support from 1681 handle where a strong reversal rally began pushing price in the overnight to the stated “supply zone” at 1693 – 96, which is also the 3D CPZ. This zone becomes the initial hurdle to overcome for higher prices…IF penetrated and hold, THEN 1698 handle becomes next objective. Failure to generate buying interest above this level calls for a pullback to 1690.00 which was key marker in prior session. Below this level is daily CPZ 1687 – 88 zone.

Today is Day 2 of a bullish 3-day cycle, so we can anticipate some back n fill type trade action given recent sell-down and reversal.

Good Trading…David

Habitude Eleven
I am courageous and I always act, even in the face of uncertainty and possible loss. Do not say, no fear. Feel the fear and act anyway. I may be frightened, but I still saddle up. I am not reckless. I act promptly in accordance with my methodology. I respect my calculations. I have a healthy respect and I balance that respect with my courage. I am an explorer. I am on a hero’s journey.

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