SPELL has had relative strength lately and I feel nobody really noticed. Unless you zoom in down to current PA, it won't look like it has done much recently.
That is not the case, SPELL has:
- Broken out of two resistances (indicated in "breakout" and "s/r")
- Flipped a key S/R level into support, thus breaking bearish market structure
- Is developing a descending wedge (typically bullish)
- Trading inside the current mid-range, not having broken the EQ as support, yet
I try to ignore all those nasty wicks as random deviations, sometimes they can be helpful but I mainly try to stick to the candles for my key levels.
If the market continues to see strength here, I imagine something like this playing out imo. A break below mid range and fakeout of the descending wedge to the bottom band of the range where our bullish order block remains, then a bounce and I'd target at least the upper band of the range and potential breakout if this rally is to continue.
Just an idea, invalidated on a break below range low (bullish OB).
Cheers!
That is not the case, SPELL has:
- Broken out of two resistances (indicated in "breakout" and "s/r")
- Flipped a key S/R level into support, thus breaking bearish market structure
- Is developing a descending wedge (typically bullish)
- Trading inside the current mid-range, not having broken the EQ as support, yet
I try to ignore all those nasty wicks as random deviations, sometimes they can be helpful but I mainly try to stick to the candles for my key levels.
If the market continues to see strength here, I imagine something like this playing out imo. A break below mid range and fakeout of the descending wedge to the bottom band of the range where our bullish order block remains, then a bounce and I'd target at least the upper band of the range and potential breakout if this rally is to continue.
Just an idea, invalidated on a break below range low (bullish OB).
Cheers!
Vatsik