Last week, well we didn’t have any results for both sell and buy setups. Market spend week waiting either for Midterm election or FED rates decision and trade in range.
Post election almost lift market above highs but some how failed to do so, and at best set double top near 11650 mark.
After that election optimism fade out, FED holds rates but confirm as they look in to next raise as per plan and Italian budget problems surface again capping rally and price decline towards key support level at 11400 ending week in between at 11530.
That can give us some clues – buying was more likely reducing risk on short positions and profit take not real buyers play.
previous week setup: https://www.tecet.net/?p=1494
Hope full will be more dynamic and there is few factors which can move market.
Most important will be Italian budget drama continues with Tuesday as deadline to post improved budget draft.
Other impact factors could be OPEC decision to cut output and lift oil price and economic data from US and China especially US inflation.
Buyers will be trying to defeat last week highs, success on break thru near trend line can send price to 11850.
targets: 11680 then on success 11760 and 11850 at extension
Sellers will try deliver short positions booked above 11600 towards lows of October. Key support 11400 have to be beaten to open path lower.
targets: 11380/30 and 11200 on success 11170/50 then 11085 as extension
Long term play
All ready we can look in to longer term setups, building base for greater rally take time and usually price revisit lows 2-3 times before attract enough buyers to lift market and reverse trend. It is worth to track this possibility right now.
It is early to calculate potential targets so we will come back to that after market provide us with more information and we can see reaction at October lows, so below just draft.
Long term (success on hold October highs)
target: 12150/250 area and on success on break out from bearish trend 13100 / ATH
Long term (fail to hold October highs)
target: 10800 area and on success 10500/300 then rally towards upper band of channel
Resistance / support