17/04/04 TUESDAY 08:35+1GMT
EARLY MORNING REPORT
We are in a full balance environment: monthly, weekly and daily. As written in the previous post, yesterday inventories became too long and after the new pit poor high a substantial liquidation took its way downside. It stopped at major composite poc 2481 for hours then it continued lower where we currently are.
Price location could provide us a new GB gap lower at open (9:00+1GMT): again, if the gap will not be retraced quickly, the odds are for continuation downside. If instead we will see a clear rejection of the new price level and a full fast filling of the new possible GB gap downside we could continue higher in order to get rid of that sequence of weaknesses left above in the last days, meaning all the poor highs listed in previous post.
Price is currently balancing around a major short/mid term level (24437). Below it we have other major references for GB as 2428, 24072 and 2396: below each of these levels we could find stronger buyers. If not we could continue lower to search below 23805 or 23465. But these are only ipothesys. The first thing to consider this morning, as said, will be the reaction of GB participants to the new possible gap downside from yesterday GB low that is at 2485: the bigger the gap, the lower the odds to retrace it during the first session after it occurred. But remember also that we are in a full balance environment with no trend in action, so our major composite poc at 2481 remains a very important pole of attraction in a weak rotational environment.
EARLY MORNING REPORT
We are in a full balance environment: monthly, weekly and daily. As written in the previous post, yesterday inventories became too long and after the new pit poor high a substantial liquidation took its way downside. It stopped at major composite poc 2481 for hours then it continued lower where we currently are.
Price location could provide us a new GB gap lower at open (9:00+1GMT): again, if the gap will not be retraced quickly, the odds are for continuation downside. If instead we will see a clear rejection of the new price level and a full fast filling of the new possible GB gap downside we could continue higher in order to get rid of that sequence of weaknesses left above in the last days, meaning all the poor highs listed in previous post.
Price is currently balancing around a major short/mid term level (24437). Below it we have other major references for GB as 2428, 24072 and 2396: below each of these levels we could find stronger buyers. If not we could continue lower to search below 23805 or 23465. But these are only ipothesys. The first thing to consider this morning, as said, will be the reaction of GB participants to the new possible gap downside from yesterday GB low that is at 2485: the bigger the gap, the lower the odds to retrace it during the first session after it occurred. But remember also that we are in a full balance environment with no trend in action, so our major composite poc at 2481 remains a very important pole of attraction in a weak rotational environment.
Ubi maior minor cessat