Good evening traders.
The chart really says it all, but let's discuss this. If you go back through this long uptrend you will see many of the common trend following patterns (flags, pennants, wedges, etc.) working out. That is because in a true uptrend those patterns do tend to work. However in periods of consolidation they do not tend to work very well and often times are used to manipulate traders into getting on the wrong side of the trade.
With the strong resistance at 118.66 holding over the last 5 days we are now in a period of consolidation. Furthermore, if we look at the candle sticks in this last push to the upside we can clearly see that they are much more aggressive than most of the candles in the previous pushes to the upside. Often times when a trend is exhausting and due for a pullback you will see a very aggressive last push.
I am not expecting to see this 118.66 resistance to be broken going into the holiday weekend and as long as we do remain below it we can expect to see further consolidation/downside.
Next key support below is at 116.12.
Enjoy!
The chart really says it all, but let's discuss this. If you go back through this long uptrend you will see many of the common trend following patterns (flags, pennants, wedges, etc.) working out. That is because in a true uptrend those patterns do tend to work. However in periods of consolidation they do not tend to work very well and often times are used to manipulate traders into getting on the wrong side of the trade.
With the strong resistance at 118.66 holding over the last 5 days we are now in a period of consolidation. Furthermore, if we look at the candle sticks in this last push to the upside we can clearly see that they are much more aggressive than most of the candles in the previous pushes to the upside. Often times when a trend is exhausting and due for a pullback you will see a very aggressive last push.
I am not expecting to see this 118.66 resistance to be broken going into the holiday weekend and as long as we do remain below it we can expect to see further consolidation/downside.
Next key support below is at 116.12.
Enjoy!
