Today will be a bank holiday in the UK and as a result, I have decided to take the day off and come back tomorrow as normal.
As far as targets to the downside are concerned, if this bearish move continues, I have marked out a zone of 10050-10200 as a potential area for a reversal. I say this because 10050 is approximately the 50% Fib retracement of the June-Aug swing and 10211 is the 200 EMA. So I am expecting price to test the 200 EMA, pierce it, but get held up by the August 3rd low and the Fib retracement area. I like the idea of a bounce from this zone, back toward 10500.
Yesterday we gapped higher first thing, closed the gap and then tagged the value area low from Wednesday, all within the first hour. At that point we were below the deviation low and the London open sparked a move higher. This pushed price to the highs of the day, above the deviation high, by mid morning. The price was rejected from these highs and turned around to test the lows and then oscillated around the POC and vwap for the rest of the session, before settling on the value area high. So what about today? Login or register to read the full article