We highlighted in yesterday’s session the importance of 1646.50 “marker” as resistance…Also mentioned that the bulls were only able to hold price stable and not able to expand the range to upside. This sequence of events is not a sign of strength, but rather a subtle sign of weakness.
Overnight trade produced only selling which broke two day lows at 1634.50 and 1631.75…Neither offered any support as the bears are growling once again. Break of 1634.50 projects downside targets of 1623 – 1625 handle. (price is just about there in pre-mkt action).
Cycle Day 1 (yesterday) typically is weak with an average range of approximately 22.50 handles..Doing some simple math: PDH minus 22.50 (1648.50 – 22.50) equals 1626.00…Current price =1626.00. So with that downside projection having been achieved, any further deterioration below 1623 – 25 zone could be “death-nell” for bulls.
We are anticipating some defensive action from bull camp in pit session, so be on alert for potential reversal from this critical zone. If a bounce does occur, the upside target would be PDL at 1634.50.
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.