* The Boe's 15basis point rise to 0.25% from 0.1% (a 150% increase lol!) was largely symbolic with a nod to the MPC's only mandate/reason for being which is the 2% inflation target (lol!) and the implicit 'maintaining of price stability.' In itself it won't halt raging inflation but it signals and begins a direction of travel for rates as a blunt instrument to control inflation. Central banks/govts have always been better at taking demand out of the economy rather than trying to correct supply-side issues to rebalance the demand/supply equation and stamp down on inflation that way.
* Thursday's 3374 wkly hi came in the wkly part of the prev dly/wkly sw lo zone = prev supp = pot sbr, where the sellers started their post Boe Mpc rate rise sell-off to Friday's lo and close. Friday's dly and the last 4 x 4hr candles (gmt+2 4hr candles) were distinctly bearish. Wkly candle closed as a doji.
* Dly/wkly t/f's are still in general downtrends (per fractal swing analysis,) with 4hr seeing a HH, HL, LH and what will be a L (when it forms fractally,) as the last few fractal prints on that t/f - so looking very bearish on that t/f too although not a downtrend (yet?) per that same measure. 1hr is in a downtrend now.
Will we see a downside follow thru on Monday,? or will the increasingly thin liquidity leading up to the Xmas break just result in a rangy stalemate on 1hr+?
wkly below.
* Thursday's 3374 wkly hi came in the wkly part of the prev dly/wkly sw lo zone = prev supp = pot sbr, where the sellers started their post Boe Mpc rate rise sell-off to Friday's lo and close. Friday's dly and the last 4 x 4hr candles (gmt+2 4hr candles) were distinctly bearish. Wkly candle closed as a doji.
* Dly/wkly t/f's are still in general downtrends (per fractal swing analysis,) with 4hr seeing a HH, HL, LH and what will be a L (when it forms fractally,) as the last few fractal prints on that t/f - so looking very bearish on that t/f too although not a downtrend (yet?) per that same measure. 1hr is in a downtrend now.
Will we see a downside follow thru on Monday,? or will the increasingly thin liquidity leading up to the Xmas break just result in a rangy stalemate on 1hr+?
wkly below.
Attached Image (click to enlarge)
Trader with an Edge.
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