Posted by TradeSmart (sometimes known as Mystic Meg..) last Friday..
"one good 'spark' could ignite a 150 point rally fuelled by short covering imho...."
Well, at the days highs it was nearly 150 up wasn’t it…..?!?
Some suckers can just read the ‘tape’ can’t they(
😆 ), but I didn’t say what day because no one asked me…(!)....MaxPain could’ve no doubt though…….
😉
Posted by CM today...
"So, a poke at 500 tomorrow?"
Maybe CM, but I see today’s move up as part of a possible ‘bottoming’ formation
around the 38.2% fib level of the big move up from 9700 – 10875 (4hr chart) and a c.500 point retracement from the highs has been fairly standard judging from the waves that we saw many times last year…
I recall the old traders saying “the bigger the fall, the broader the bottom” – so the consolidation may play out, testing the lows, for a while yet…
There has been some talk of a “dead cat bounce” but when the market has become depressed, there are many bears about, but they quickly change their tune as the market rises against them – time will tell…!
But, I also note the ‘gap up’ (3min chart) left from today’s action that may well have to be filled before a sustained move up………
Hope that the above reads ok – just returned from a Burns Night supper, during which I became well acquainted with ‘Laphroaig’……. :cheesy: