3rd update 6-12-08

click to enlarge

The last 4hr bar closed up above 5400 the upper range of support. But just as important that bar was supported by operator accumulation and accumulation at this support level is also evidenced by operator/professional buying on the 1hr whenever we touch this support level.

A close above next resistance on higher volume would signal a 4hr bull pivot above support. If this happens a long trade should be your bias as you will have the pivot support as well as operator support beneath longs in that area.

Bar 1 on the chart was a volume divergence at support to signal that the bears lost control there. It was a high volume battle to a draw between bulls and bears, so this is our key bar on the way up especially since the high of that bar coincides with overhead resistance. If we break above the high of this bar price should continue up to 62% Fibonacci drawn from the top of the last down move to the last bottom.

If you want to try to get in early and lower your stop level you can enter long on a pullback to the close of bar 1 on the chart 5432 with your stop 6 pips below the low of bar 1. But be advised that this is a higher risk strategy because no pivot support has been developed yet. If you want to try it only take half of your normal position here and add to your position on the formation of the possible bull pivot spoken about above.

That’s all for now, I’ve been up all night so I gotta take a little nap.

Jerry
tradingmajic1@gmail.com
jerry@forextradingmajic.com