Strong rally, risk higher
Day trade update and view
A firm rally on Tuesday to build on Monday's bounce and Friday's rebound now above resistance at .7013, rejecting bear forces from Thursday's sell off to a new bear move low at .6826, to switch risks higher for Wednesday.
Day trade setup
- We see an upside bias for .7041 and key .7054; a break here aims for .7088 and maybe .7137 .
- But below .6961 opens risk down to .6896/93 and possibly .6826.
The push below the key cycle low at .7027 signalled an intermediate-term shift to a bear trend.
Downside risks: We see an intermediate-term bear trend to aim for .6776, .6409/02 and .6253.
What changes this? Above .7054 shifts the intermediate-term bear trend straight to an intermediate-term bull trend.