The close was some 2000 sat above the Weekly R1, which was quite a
statement. Today we see it advance without much retracement and is now trading
above the previously broken, longer term , which when it was broken Feb 1
marked the beginning of the last drop to current low. The first H4 close today has also
been above the R1, the Daily R1 which is intraday . We might either see a slight
pullback from current levels towards the Weekly R1 at 9500 or price may keep advancing
now when momentum is building. Next resistance is 10150-250 (Daily R2 & reaction low
from Jan 26). If price moves more sharply, we are looking at 10800 level (S/R level/Daily R3
Weekly R2) where we also see the upper end of a new .
Again, if price manages to close above yesterdays close at 9490 on the ,
chances are we will see continued push higher on that timeframe and if it closes below
that level and perhaps the 9350 (61,8 fib) we are looking at support around 8850.
Trendfollowers who entered long on the signal I posted Feb 12, have now trailed the stop
to 8857 (Kijun Sen, the white line) which stands just below the channel floor on H4 tf They have
locked in some profit already.
Overall, price is recovering well from the sell off previous month and is looking stronger than
expected as it has encountered the 9200-500 stronghold . This makes the
bias stronger than a few days ago.