After two strong days of gains from the month's bottom, last week’s buy strategy relied on the bullish Hammer signal at the low as a pattern consistent with exhausted bear market momentum and the start of a new positive bias. On the week, trading was consolidative with a small improvement in prices but going into this week the forecast remains bullish. Positive momentum signals are still increasing, indicating buying interest is strengthening and as long as prices remain above 80.40 the targets are for buying through 82.00, the high on the 18th March, to 82.46, the 2-week top, then the high for March at 83.31 and potentially February's 83.99 high trade.
Risk to this forecast would be selling back through 80.40, a correction of 50% of the strong rally on 18th. This should be a bearish signal that the improvement is stalling and sentiment is deteriorating further to 80.00 then 79.00.
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