There is no arguing that the Bulls have been stampeding price ever higher, barely without a pullback. It’s looking more like a classic “Pump n Dump” scenario, rather than a new fresh up-leg. We think it’s time to become more defensive in our trading and not get carried away with this recent move higher.
In yesterday’s blog post we highlighted extreme price targets between 1878 – 83 zone. Here’s an excerpt: “IF recent strength continues above Prior Day High (1868.00) and converts, THEN further upside measures 1871.50…1874 – 76 zone, followed by extremes STAT X Zone (1878 – 83).” This upside objective has been reached in overnight trade with high tick reading 1883.50 which coincided with our 3-Day Cycle High projection.
Today begins a new cycle which typically is a weak session with an average range between 18 – 23 handles. IF price can hold the Prior Day High (PDH) 1878.75 and push through overnight high at 1883.50, THEN potential is to push 1888.00 – 1992 zone. Failure is sustain a bid warrants a pullback down to 1870 – 73 zone. Below this zone, targets the 3D CPZ 1860 – 63 zone. Extreme downside price targets 1857 – 59, followed by 1850 – 52 zone.
Caution is warranted…Trade accordingly…ALWAYS USE STOPS!
I know anything can happen, and I can handle anything that does happen. I am open minded. My thoughts and perceptions are clear. I know what to look for. I have rehearsed everything. I adapt to change. I will listen to my indicators and the patterns that emerge. I will adjust and not demand that things continue as they first started.