Still within scenario “a”, posted on March. 1st.-
I´ll be looking at how price action develops within scenario “b” (eventual rejection of lower value in the $1564´s).
a key sitaution I am currently looking into, which was pointed out last week
What it is important to note, is the fact that today´s move has wiped out all the long positions that were left from yesterday. This is kind of particular situation, since reference points (in terms of orderflow) tend to be weak. Usually, what I´ve found out in similar situations is that it usually ends up in an important move, in either direction.
As you´ll not eform the chart below, longs from $1572 are currently being pressure by sellers . this is a particular situation which should be taken into account in the sense that it might bring 2 opposite outcomes to the table
a-) longs not only sustain selling pressure, but reverse it into an overwhelmingly short market, which in turn creates the fuel for a rally
b-) selling pressure continues. Longs retreat sending price lower into a tailspin.
Again, my line in the sand for recovering upward momentum are $1600-$1598, followed by $1620-$1615.