Bias-parameters
Afternoon bias
Hand grenades, horseshoes, and bias grace periods.
Borderline bias-up is still a bias-up until proved otherwise..
[pay]The market formed a Rising Wedge while consolidating around the 1306.50 bias-up signal. Its lower-end stopped 1-2 ticks short of fulfilling its pullback potential to 1305.00. But the pattern resolved up, nonetheless.
Well, maybe a little less. The 1312.00 bias-up target has been attacked to within 2 ticks. Although 3-minute RSI became overbought at the high’s first instance, it left overbought on the most recent high’s bar. And 1-minute RSI did not become overbought.
1312.00 may yet be touched. Regardless, the pattern’s resolution is potentially very bearish. Being the product of a Rising Wedge in an uptrend, this higher high should plateau and then reverse down. Back under 1309.00 would rob buyers of their traction. Back under 1306.50 would signal momentum reversing down.
The next higher resistance is 1313.50. Recovering it would signal that this morning’s rally had barely begun, having potential up to 1338.00.
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Morning bias
Afternoon bias
Dubious bias-up runs into trouble.
Shaky ground still shaking.
[pay]Not first touching 1310.00 support made the rally unlikely to extend. In fact, price just plunged from 1315.25 back down to the open’s 1310.50 low.
RSIs had stopped improving when 1312.75 was first probed as resistance, and actually deteriorated through all higher highs.
Now an obligatory bounce off of the open’s 1310.50 low is working off an oversold 1-minute.
1310.00‘s relevance is no longer relevant. While a valid rally needed to touch it, a valid decline should slice through it.
Exiting the morning’s bias environment back under 1312.75 would invalidate the bias-up and any target it had in-play. Entering the noon hour back under 1311.00 would hold it as resistance through yet another timing window.
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