Bounced at the make it or break it level, looking for $1550
Take a look at the excess low on July 31 and how it is acting as support for this move. The same day we had a $1503 high, so you can follow that to see how the candles break up and down from here.
I drew a channel through this and the bottom and top have behaved quite well so I can’t imagine this changing. We got out of it yesterday at the end of the day, but it open up literally right on the line… which to me is significant.
This tells me that we are in a VERY important area at $1503… the same high after the major gap down.
So what does this tell us? There is a major gap to fill from $1503 - 1532 (white box), it made a break for this last week but got rejected quickly. I can’t remember why, but probably bad news hit. If you look at the volume profile on the right bar charts can see how it “thins” out the higher up you go. These are trapped buyers, I would expect them to push towards this area. Not many sellers (red) so I think this is an area we will revisit. The 52 week high is $1587, so quite a lot of people stuck above from here. I would be surprised if we got there, but I think a reasonable monthly target is in the $1550 area.
Two other important things to note, the purple lines — seems like an important support level. If we break down from this expect the next purple line, and if that goes I would expect the bottom of that channel.
The orange line is the excess low of 7-30 at $1492, also an important level we have been breaking up and down from recently, I expect $1503 to be the *new* 1492 level.
I drew a channel through this and the bottom and top have behaved quite well so I can’t imagine this changing. We got out of it yesterday at the end of the day, but it open up literally right on the line… which to me is significant.
This tells me that we are in a VERY important area at $1503… the same high after the major gap down.
So what does this tell us? There is a major gap to fill from $1503 - 1532 (white box), it made a break for this last week but got rejected quickly. I can’t remember why, but probably bad news hit. If you look at the volume profile on the right bar charts can see how it “thins” out the higher up you go. These are trapped buyers, I would expect them to push towards this area. Not many sellers (red) so I think this is an area we will revisit. The 52 week high is $1587, so quite a lot of people stuck above from here. I would be surprised if we got there, but I think a reasonable monthly target is in the $1550 area.
Two other important things to note, the purple lines — seems like an important support level. If we break down from this expect the next purple line, and if that goes I would expect the bottom of that channel.
The orange line is the excess low of 7-30 at $1492, also an important level we have been breaking up and down from recently, I expect $1503 to be the *new* 1492 level.
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