The hinge could not be clearer. A mark-up is very likely. Should the market fail here in a potential minor upthrust and head straight down it would mean trouble. Highly unlikely.
A chart to analyze yourself after the discussion of the daily below.
For you after the discussion below.
A very small range, close at the top and good volume with an inability of prices to decline despite the evidence of distribution I pointed to yesterday spells a likely advance.
1 is a sign of strength. It is the first advance with volume, wide range, closes at the top and ease of movement. This is different behavior than anything we have seen previously in this trading range. Because of this sign of strength, the likelihood is that the spring around 1:30 will not fail and will likely end the consolidation. 2 shows ease of movement in the rally from the spring. To make the higher high the burnt orange line must be penetrated. This is tested successfully with the higher low marked. to three we have ease of movement and a higher high for this small wave. The higher low and test places us on the spring board and the upward trend is made more likely by rising above 3. At 4 about 2 points above the low, you have about all the evidence you need for a change in trend. How far this trend will take us is yet to be seen.Please use the charts I have indicated above to perform a similar analysis of trend change.
