Bulls on parade! Bulls on parade! They had a good run but we are now seeing some fatigue as it appears the RSI
is reaching overbought conditions on the 4 hour chart. breaking the head and shoulder inversion has enough size from the neckline to take us eventuallly to 12 but for now the temporary resistance appears to be right at the 200SMA (In Pink) right around 10,128. It has help reinforcing the resistance being almost overlapping with the yellow fib extension line of 38.20% reach will likely make the support line the next fib line down, or possibly even the next one down after that, with i think worse case scenario it going all the way down to the head and shoulder trendline
and bouncing back off of it....probability favors the green fib as the most likely support zone
, with the turquoise fib of 61.80% being the next most likely contender. Of course there could also not be much of a retracement at all since we are still riding the momentum of the validated inverted h&s
pattern on our way to 1200. I'm thinking with overbought signals its time for a slight retracement. Play cautiously right now because in these momentum boosts its much harder to predict the depth charts direction.