Channeling Up

We are still channeling upward and I expect to continue after we pause at the midpoint of this channel as illustrated below…

Advertisements

Possible Bullish Scenario

Major Resistance at 1.3013

If we blow through this level, I put my horns on.

Fib Confluence

Fib confluence points to one leg higher…

Waiting on a catalyst…

As written on 9.09.10, this market lacks a clear direction with range bound action imminent until a force nudges us in one direction or another. ¬†Currently we are making an attempt to extend the short term range, but still in the bounds of our longer term range. My current strategy is to continue selling extremes back to value… Above 2900 it is time to reevaluate, and consider some trending scenarios.

Testing the Value Area Low

We are testing the Value Area Low with a momentum divergence, pointing to further range bound trading. There are low risk opportunities in this range. We are bouncing around inside an upward channel. I am keeping stops tight and looking for rejection at the extremes and taking profit at the VPOC…

What has kept us range bound for the last month…