Now consider the fact that most of those who sold at 33773 have been stopped out. A stopped out trader could react in 2 ways: take the loss and esc the market at least temporary. Or reverse his position in the opposite direction. In both cases this will lead to an acceleration above the weak level. Then, if new serious traders will pile on it, you could see continuation in the new direction. If instead no stronger trader will add his new position above it, you may also see a stall above that particular level and, eventually, a new correction in the opposite direction or balance. Sometimes the game is only to go and take out the weak stops in order to remove weak sellers from a market and, after that, continue in the previous direction.
So it is very important to monitor the reaction above such levels in order to understand what kind of game is occurring.
In this particular case, we also have a good reason to continue higher as we have our main composite poc at 3397.
So it is very important to monitor the reaction above such levels in order to understand what kind of game is occurring.
In this particular case, we also have a good reason to continue higher as we have our main composite poc at 3397.
Ubi maior minor cessat