NQ1!, False Breakdown Sparked a Rally
In my previous idea I said that the Friday's price action suggested a potential false breakdown out of the multi-day consolidation area. Today, it was confirmed by a trend up day across the entire consolidation area. This is what is expected. When it comes to a false breakout or breakdown of a mature balance there is 80% chance to fill that balance from edge to edge. It works on any timeframe. Honestly, I did not expect that to happen in one day. My expectation was 2 days based on the recent average daily range. But the aggressive buyers pushed the price all the way up.
At this point, the price is exhausted and if some continuation happens the upside could be limited. My anticipation of inside day tomorrow where some profit will be taken and the price will spend time fixing the market structure.
Long term view: the mature balance created at the edge of the important resistance may serve a launching point to upside targeting all time hight. This is a high odds scenario based on the observed price action. The low odds scenario is the downside move that could create a serious drop. There is a lot of trapped buyers in that mature balance.
My bias remains neutral. From the market structure perspective no changes.
03/11/2019
At this point, the price is exhausted and if some continuation happens the upside could be limited. My anticipation of inside day tomorrow where some profit will be taken and the price will spend time fixing the market structure.
Long term view: the mature balance created at the edge of the important resistance may serve a launching point to upside targeting all time hight. This is a high odds scenario based on the observed price action. The low odds scenario is the downside move that could create a serious drop. There is a lot of trapped buyers in that mature balance.
My bias remains neutral. From the market structure perspective no changes.
03/11/2019
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