Strong Week for the Bulls

As we noted last weekend, "I think the test of 4365 area late in the week can be viewed as a successful retest of the Opex week lows… and if so, we may be close to beginning a leg higher."

We added, "Odds remains flat but I am watching for a buy signal to show up very soon and if so, will looking to get back in long...Price action was constructive and I am on the lookout for a buy signal/long trade setup to show up very soon."

What actually happened is it was a strong week for the bulls with price closing above the 4500 zone.

Looking ahead, price action is bullish/neutral short term, bullish medium term and bullish long term.

Last week saw a strong advance over the previous week, with price now consolidating at the highs. We can have a bit more consolidation, but the path of least resistance does look higher. Internals short-term are on buy signals, medium and long term are mixed.  Our Odds Indicator remained flat, but I am looking for a buy signal to show up on it soon. 

On price, the 4500/4495 area is support.  A break of this will likely lead to a test of the 4460-40 area, which is strong support. If we do get down there, I think Odds can generate a buy signal. Right now we are overbought on different timeframes so some more consolidation/pullback will be healthy for the continued trend higher on a larger timeframe.

Grey zone resistance at 4544-55 and then in the 4580 area. Support is at 4509/4496 and 4436-23.. 

For Tuesday, daily pivot is at 4522. Resistance R1 is at 4528 and R2 at 4538.  Support S1 is at 4512 and S2 at 4506. 

All the best to your trading week ahead.

Princely Mathew hosts The Smart Money premium service at ElliottWaveTrader.