Our first trading day for 2014 delivered pretty much what you’d expect when Price Action (PA) begins the day well below an untested Daily Pivot (DP) – movement North. We were looking to play that move after a Higher Low (which arrived) but sadly was unaccompanied by an entry signal. In fact, our first Signal was for a with the trend Short but the untested DP ruled the day. No entry.
Consolidation has been the dominant feature since and we join the “action” today with PA having tested DP which leads a Bearish Pivot formation, confirming a Short Term Bearish Trend. I suspect the reason for this trend – the bounce off our Major Resistance Trendline #1 has some strength remaining and am therefore thinking Short. The beautiful confluence of Support Trendline #2 and DCZ 1.3450 looks a likely target. The lack of major Support until that level appears good evidence for further selling.
The Day Ahead
Tough to think Long until strong Support is reached so it’s all about the Shorts right now.
High Impact News
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Terrific Tuesday everyone.