Lots of opportunities yesterday as PA positioned itself to break free and prove which of the Chart patterns was correct, the Flag or the Double Bottom. Our first order (Short) expired , #2 triggered and closed at BE, #3 also expired and #4’s result was up to the individual. By the rules, the Long order should have been cancelled prior to News but I notice a few smiles on faces this morning from those who chose to take the high risk route.
The Double Bottom won the battle yesterday and the re-entry into the Flag suggests more buying is on the agenda.. Pivots remain Bearish however, though DP & WP are once again, inseparable. It appears that 1.2400 has held and the Double Bottom has asserted some authority. Today’s question is how much authority is has? I’m prepared to give the potential Reversal due consideration and, after a DP test, (the key level of the day) a Long might be a good option. Don’t forget the big picture however, which is big time Bearish.
The Day Ahead
I’ll be keeping my eyes on PA around DP, should it choose to visit. I’m on the Bulls side whilst above this area.
High Impact News – CET
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Wishing you a Wonderful Wednesday