Every week price makes its highest and lowest point.
Each week is marked off by grey vertical lines.
For the week of 02/26 - 03/01 the highs and lows of the week were: 39111.3 - 38726.2.
On Friday Feb 23 2024, price broke ATHs creating a new historical high point at 39280.3. This is what I call the "Zig Impulse Candle" which is often identified by a strong bullish momentum until it approaches a strong resistance level that is represented by an upper wick. The longer the upper wick the stronger the rejection and the smaller the body.
This rejection highlights that we are now entering into "Zag bearish rejection" phase of retracements. Represented by the 3 subsequent bearish candles, price began to form a series of LHs and LLs on the smaller TFs. One way to identify the end of the retracement phase is to look for HLs on the biggest TF. The 11H was the biggest TF to signal a HL at 38726.2 which was also marked by consolidations and what I call "Bullish rejections" at support level. Using the fib tool we can see that the HL was completed at the 38% fibonnaci level. This is a key level to watch out for as it is a level of extreme volatility where price can shoot in either direction.
Rejection at a level of support indicates that we are now getting a retest of the daily candle upper wick. Since then price has become bullish making HHs and HLs on the smaller TFs until it reached it's highest point of the week at 39111.3. A major clue to seeing a retest of 39280.3 is due to the bullish daily candles on Thursday Feb 15 and 22 (pointed out by the green arrows). The candle on Thursday Feb 15 was so strong that it is enough to wipe out the entire bearish candle which preceded it. Similarly, the candle which initially broke ATHs on Feb 22 pushed up over 4,500 PIPs. These candles suggest that the bullish trend is strong and that even though ATHs were created, it is no where near finished.
It is important to note that even though we will get a retest of the Daily candle upper wick at 39280.3, there will first be a period of retracement since the previous week ended with it's highest point. We cannot buy from a high point so we must first sell. This is called "Trends within a trend". The key is to monitor where the sells end and which is the biggest TF to signal a HL point. As of now, my current TP for any sell is at 38920.3 which is indicated by the daily break-line. Therefore, it is possible to get a retracement to this level before price continues bullish to ATHs.
As long as the HL is higher than the low of last week, then we are still on track to 39280.3.
As usual, always exercise patience, trust your analyses and trade what you see.
Have a great trading week. See you all next week!
Best,
JF
Each week is marked off by grey vertical lines.
For the week of 02/26 - 03/01 the highs and lows of the week were: 39111.3 - 38726.2.
On Friday Feb 23 2024, price broke ATHs creating a new historical high point at 39280.3. This is what I call the "Zig Impulse Candle" which is often identified by a strong bullish momentum until it approaches a strong resistance level that is represented by an upper wick. The longer the upper wick the stronger the rejection and the smaller the body.
This rejection highlights that we are now entering into "Zag bearish rejection" phase of retracements. Represented by the 3 subsequent bearish candles, price began to form a series of LHs and LLs on the smaller TFs. One way to identify the end of the retracement phase is to look for HLs on the biggest TF. The 11H was the biggest TF to signal a HL at 38726.2 which was also marked by consolidations and what I call "Bullish rejections" at support level. Using the fib tool we can see that the HL was completed at the 38% fibonnaci level. This is a key level to watch out for as it is a level of extreme volatility where price can shoot in either direction.
Rejection at a level of support indicates that we are now getting a retest of the daily candle upper wick. Since then price has become bullish making HHs and HLs on the smaller TFs until it reached it's highest point of the week at 39111.3. A major clue to seeing a retest of 39280.3 is due to the bullish daily candles on Thursday Feb 15 and 22 (pointed out by the green arrows). The candle on Thursday Feb 15 was so strong that it is enough to wipe out the entire bearish candle which preceded it. Similarly, the candle which initially broke ATHs on Feb 22 pushed up over 4,500 PIPs. These candles suggest that the bullish trend is strong and that even though ATHs were created, it is no where near finished.
It is important to note that even though we will get a retest of the Daily candle upper wick at 39280.3, there will first be a period of retracement since the previous week ended with it's highest point. We cannot buy from a high point so we must first sell. This is called "Trends within a trend". The key is to monitor where the sells end and which is the biggest TF to signal a HL point. As of now, my current TP for any sell is at 38920.3 which is indicated by the daily break-line. Therefore, it is possible to get a retracement to this level before price continues bullish to ATHs.
As long as the HL is higher than the low of last week, then we are still on track to 39280.3.
As usual, always exercise patience, trust your analyses and trade what you see.
Have a great trading week. See you all next week!
Best,
JF