After yesterday's remarkable price rise of 300 basis points we have arrived in a narrow trading range. Price is supported by the red lower RL and resisted by the upper RL.I have found that where you have RL's and MLs ( upper and lower parallels) you have a higher probability trade setup and here you have not only a RL from another fork but also the green UMLP.My criteria for any trade entry will be set out as a list in a coming post this weekend but like with ML's you never just buy/sell because price has encountered a RL.
I fully expect price to oscillate between these two RL's until this afternoon and then break out either way...probably to the upside and to the CL that price has been trying to get to since the very beginning of this reversal and the subject of many postings since 18th June
http://medianlinetrader.blogspot.com/2010/06/it-seems-pretty-obvious-to-me-where.html
the objective would now with an average price and time ratio be around 1.2700 and remember that this is the same fork that price found support after the recent sell off on it's lower median line parallel. The sell off being a reverse movement after price failed to reach the CL on it's first attempt.
Non Farm Payrolls may be the fundamental news that sets it off again towards 1.2700 or down for a retracement that must come some time after a move like yesterdays but will we go higher first?
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