That area of interest is around 4953”…… Thursday’s Report
SPI Daily
SPI reversed down from the Weekly 50% level and completed the move into July's lows, hitting a low on Friday in sycom @ 4951, and we can see Friday moving higher from 5013.
Around July's low after completing a 2 month wave pattern downwards, I'm look for a counter-trend move back towards the July 50% level.
A few of things need to be verified for the UP move to occur :- bounce off Monthly lows, breakout of the 5-day highs (usually lead by US markets), and then price needs to be trading above the Weekly 50% level.
So far the first pattern is playing out, and now we need to see two more.....
But is the SPI going to move higher, or actually continue down???
Whenever there is a breakout of the Weekly timeframe and Friday closes below, price normally continues down towards the next weekly lows (4929) after a 2 day consolidation.
We can see this pattern taking place, as was the case two weeks ago.....
SPI Weekly
In the Weekly chart the same pattern, breakout of June's lows @ 5100, can send the market down into 4836 before any reversal pattern back towards July's 50% level occurs.
Therefore the first two days of trading next week should give traders a fair idea on how the market is going to play out, because if the trend is going to continue down, it will normally occur after a 2-day 'stalling pattern.
There are two set-ups in Play in July:-
Set-up A:- bounce off July's lows @ 5013 and continue up into the 50% level.
or
Set-up B:- continuation downwards, which is still a possibility, because of the breakout patterns just discussed.
SPI 5-day
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