Well done bulls. Wrong.
Very strong move at Friday but beside squeeze out most recent shorts such aggressive rally is dangerous. Price create air pocket and can easily collapse on even minor disappointment. We have US / China talks early next week and there is chance to trigger sell off regardless outcome from that event.
Rally started over night with welcome to Tokyo traders as they come back from holidays and extend thru EU and US session ending race at 10810+
One hand is good to see as trading is not any more one sided but other hand for price stability we would like to see some consolidation periods in order to form number of supports on way up, right now support is still around 300p lower!
For this week analyse, last week charts still are good enough to observe final development in price action.
last week charts:https://www.tecet.net/?p=3718
Lets see if market euphoric rally will last and get strong enough to further push towards 11k mark
Good target for rally top: drop started at 11,200 in December after last US/China meeting.
Price for that need to find support and limit pullbacks on profit take.
Fail to take out last lower highs can trigger sell off towards 560/400 and lower if done badly
Buyers still have main task before them: challenge last lower highs and take out 11k mark resistance.
Sellers just cant wait for rally steam run out, any profit take below last lower high can get hijack and become short entry
Targets: push under support 10520 and 10400 to create option for retest lows/create dip under.
TP 10520/430 and 10150 in extension