- Technically the MKT is "on the fence" with the
potential to go in either direction or nowhere. Pick your points and have no
expectations, as the likelihood of this MKT trading sideways is high.
- On the SELL side BREAKOUT, FADE and REVERSAL strategies
are valid, however profit and position risk management should be aggressive and
anticipated. The pivotal nature of the session does have the potential to be
the starting point for a new move. However, the probability of any trend action
is more likely to just be the MKT defining its new consolidation extreme.
- On the BUY side BREAKOUT, FADE and REVERSAL strategies are
valid, however profit and position risk management should be aggressive and
anticipated. The MKT is "on the fence" and does have the potential to
be the beginning of a new trend move. The probability of a new trend move is
low. However, any price trend action is more likely to just be the MKT defining
its new consolidation extremes.
Today's PRICE MAP Performance for BOBL
- Coming into today's trading session for the BOBL, our expectation is for a sideways trading day. With the R Level at the DIR, the analyst is telling the trader that this is the "breaking point" for the market to make a move higher. Since we are in a NEUTRAL DIGESTION Market State, the probability for any new trend action is low, and a breakout above the UP is more than likely just establishing a new consolidation extreme. Sure enough, this is exactly what happened in the BOBL. Around 4:30 AM we are given a BUY UP BREAKOUT opportunity above the R Level. Since the Market State calls for tight position management, profits should be realized sooner, rather than later. An opportunity for profit taking was given shortly before 5 AM, which would have realized a quick profit for an agile trader. From here the market sold off, met resistance just below the UP and then rallied back up to the minor level. It then retraced back to the UP, put in a HIGHER low, signalling positive structure was still in tact, and offered another opportunity to enter from the long side when it took off from the UP around 6:30. Since our expectation is that a new consolidation extreme is being formed, rather than a new trend beginning, a valid profit target would be at the UT1. Again, the market rallied to the UT1, giving the trader an opportunity to take profits shortly after 9 AM. The break in positive structure (lower low) just after 10 AM served as a warning to the trader, and the price action moved sideways inside the newly formed digestive zone for the remainder of the session.
