DOLLAR INDEX WEEKLY ANALYSIS
The fats in the fire, or at least, weekly price action suggests that interpretation!!
The rally that started / resumed the week of Monday 9-21-2020 had initially
begun on Tuesday 9-01-2020. Subsequently, after Monday 9-21-2020, the rally
peaked on Friday 9-25-2020, completing a weekly price bar. Next, prices turned
down, within the [just created] short term trading range. Prices declined for two
weeks. This week, prices ‘bounced’ within the just created short-term trading
range. Now, the critical trading question has become: “Is the current bounce
going to become a “retest / lower high” to the high on Friday, 9-25-2020?”
Within this week’s price bar [10-12-2020 / 10-16-2020] the increased volume on
Tuesday 10-13-2020, when compared to the volume on the previous Friday 10-
09-2020, suggested that there was interest in the upside effort. Nonetheless, the
decreased volume on Thursday 10-15-2020, when compared to the intra-week
daily volume on Tuesday 10-13-2020, indicated that upside weekly interest was
not immediately sustainable. Subsequently, prices had a marginal decline, on
decreased volume, on Friday 10-16-2020, to close the weekly price bar, with dual
interpretations, but nonetheless, with an analytical bias toward the current wave
of buying, as “most probably,” a short-term bounce that could / should become a
“retest and lower high” to the high on Friday, 9-25-2020.
Assuming the interpretation, just explained, becomes the reality, prices should be
positioned or will soon be positioned, to decline and record a new low for the
larger decline. Therefore, the correct action, for traders – now, is to closely
monitor forthcoming price action for indications that the current short-term rally
is a short-term rally that cannot create a following [buyers] to sustain the rally
[effort], to become more than a bounce within a larger decline! If so, the trade
should have the required “good odds.”
Cheers,
Robert N. Burgess robertnoelburgessgmail.com
Blake J. Burgess blake.burgess@ymail.com
The rally that started / resumed the week of Monday 9-21-2020 had initially
begun on Tuesday 9-01-2020. Subsequently, after Monday 9-21-2020, the rally
peaked on Friday 9-25-2020, completing a weekly price bar. Next, prices turned
down, within the [just created] short term trading range. Prices declined for two
weeks. This week, prices ‘bounced’ within the just created short-term trading
range. Now, the critical trading question has become: “Is the current bounce
going to become a “retest / lower high” to the high on Friday, 9-25-2020?”
Within this week’s price bar [10-12-2020 / 10-16-2020] the increased volume on
Tuesday 10-13-2020, when compared to the volume on the previous Friday 10-
09-2020, suggested that there was interest in the upside effort. Nonetheless, the
decreased volume on Thursday 10-15-2020, when compared to the intra-week
daily volume on Tuesday 10-13-2020, indicated that upside weekly interest was
not immediately sustainable. Subsequently, prices had a marginal decline, on
decreased volume, on Friday 10-16-2020, to close the weekly price bar, with dual
interpretations, but nonetheless, with an analytical bias toward the current wave
of buying, as “most probably,” a short-term bounce that could / should become a
“retest and lower high” to the high on Friday, 9-25-2020.
Assuming the interpretation, just explained, becomes the reality, prices should be
positioned or will soon be positioned, to decline and record a new low for the
larger decline. Therefore, the correct action, for traders – now, is to closely
monitor forthcoming price action for indications that the current short-term rally
is a short-term rally that cannot create a following [buyers] to sustain the rally
[effort], to become more than a bounce within a larger decline! If so, the trade
should have the required “good odds.”
Cheers,
Robert N. Burgess robertnoelburgessgmail.com
Blake J. Burgess blake.burgess@ymail.com
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.