- Tuesday’s candlestick (27 May) was a bull bar closing near its high.
- In our last report, we said traders would see if the bulls could create a follow-through bull bar closing near its high. If so, the odds of a retest of the 20-day EMA or the 3950 area will increase. Or if the bears would still be able to create more follow-through selling.
- The bulls managed to create a strong bull entry bar.
- They want a reversal from a double bottom bull flag (May 16 and May 22).
- They hope to get at least a retest of the 20-day EMA (around 3880). The market tested near today (high 3873).
- Next, they need to create a follow-through bull bar closing above the 20-day EMA to increase the odds of a reversal.
- The bears want a reversal from a double top bear flag (April 25 and May 14) and another smaller double top bear flag (May 14 and May 20).
- The problem with the bear's case was that the follow-through selling was limited (May 26).
- If the market trades higher, they want the 20-day EMA or the 3950 - 4000 as the resistance area.
- They want a reversal from a wedge pattern (with the first two legs being May 14 and May 20).
- Exports for the first 25 days seem good, +7%
- Production is up marginally so far.
- Refineries' appetite to buy in recent days seems ok.
- For tomorrow (Wednesday, 28 May), traders will see if the bulls can create a follow-through bull bar closing above the 20-day EMA. If so, the odds of a retest of the 3950-4000 area will increase.
- Or will the market stall at the 20-day EMA again?
Andrew
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.