Break out (conventional charting)/SOS (Wyckoff Method) day may sum our market today. Volume also supportive of the move. OBV (On Balance Volume at the bottom window) has been registering higher peaks as well as higher troughs following the footsteps of the price action.
Seeing Small Ordinaries out performing their bigger siblings can only be an encouraging sign that bulls have moved in with vengeance, so far at least. RISK ON in my view with money flow large enough to sustain the move with another MINI BREAKOUT today.
Once we have registered the 3rd HIGHER PEAK ( marked with 3) within the trading range, that would have triggered WYCKOFF BUYING earlier than any other method that I know of. That is why I love Wyckoff Method. It does provide me with early signals. Not all succeed, but what does in this game ?
We are without a doubt short term overbought, but at times of strong moves overbought conditions may remain that way for quite a sometime. I would expect some sort of a pause at current levels (2100-2150) which has a cluster of resistance factors lining up.
Those are as follows :
1)62 % Fib retracement
2)200 day SMA
3) Prior price BREAKDOWN zone
Lets enjoy the ride while it lasts. As to how long, don’t we all wish that we knew.
Enjoy your weekend.
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