Looking at this weeks price action so far
The fair bounce from 10.50 to 12 dollars, was a tradable bounce. but for it to develop a bullish bias ,in my view, as an upwave pattern, needed to hold the pullback and show strength at the support steps around 11.00/11.25/11.40 area, in my view. and to see the 11 break down and test 10.80, is neutral at best, and really looks like a range developing from 10.50 to 12 and back down again. Today bounced again at 10.80, up 50 cents to find resistance at 11.30, and this 11.30 that was the support zone I wanted to see hold coming down from the 12 top.... now this 11.20-11.30 area becomes resistance, you see how this has a magnetic energy ...but its resistance now, and the bias, to my view, is still trying to go down. why wouldnt it try to retest 10.50 again. These are small differences in price 30 cents here or there is small, but what it shows is the price energy bias, bullish pattern needs to bounce up at support and make more rally waves. Bearish bias caps the rally at 12,as we saw, and then breaks down below the bullish support zone at 11.25 and sends it right down to 11 and now 10.80 with no support where the support should be at 11.25 area. and this is showing the bearish bias is strong enough to render the rally neutral at best. and coming off a rally wave (10.50 to 12 dollars) tells me that the rally is proving a bit weak now, the pullback is jusr as strong.
If there is any pattern developing here, at the moment it is looking like a possible Range pattern, from 10.50 to 12 and back down again. Range patterns are tradable. It was a fair gamble that worked last time. Where would the trader's entry point be.. 10.50 again?
The greater swing pattern zone is still 13 to 7 and back to 13.
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and looking now at the bigger swing picture... maybe its ok to see anything holding at 10.50 is ok, and could bounce back into another rally. But as far as small intraday wave patterns, the latest rally that went from 10.50 to 12 , has broken down, as it goes back to 10.50. The bias is neutral at best right now, in my view. The larger swing pattern that peaked at 13, then peaked at 12. The bottom zone bottomed at 7 and then bottomed at 10.50...so the picture could be developing a large triangle point ,which might be around 11.00-11.50 area. and we could see that point get resolved in either direction for a 2 dollar move. 11.50 to 9.50 or 11.50 to 13.50
