This is the update to my July 19th post.

On the short term, the daily bars chart updated here, we see that yesterday price definitively broke and closed above the weekly R2 resistance.  With this break, it has broken out of the consolidation between the lower two weekly R curve levels.  We can now identify the action since the beginning of July as an uptrend since it has a higher low and will have a higher high, and since we see that price did not break below the New S1 in the hierarchy of Midas support curves that’s tracking this new uptrend.

In the coming weeks, we should watch for how it behaves as it encounters R2 and R1 at 1113 and 1118.5 respectively, or the weekly R2 at 1142.  A turn down from one of them would not negate the new uptrend, rather, it would just establish the higher high.  The real test will come when the pullback gets down to the New S2; if it breaches that, then we’re back in a consolidation.

Tweet This Post