Review & Plan - Thursday
Review
Yesterday's price action was dominated by the sharp sell-off in crude but buyers still managed to support the break higher this week and continued to build value around the VPOC of the week so far, currently 2046.00
Overnight
Early in the European session buyers pushed through the heavily defended 2148 level from yesterday. This has seen a further squeeze on shorts and a move up to 2168.00 from a 2142.75 low.
Weekly profiles below show the current week's attempt at a small balance area around 2146.00
The daily chart below shows the move from the yearly vwap to the 2nd standard deviation band, which is steadily rising. We may start to see some digestion of recent price rises in the short term having hit this band, and a correction back to retest the breakout point at 2119.50 would be a good test of longer time frame buyers initially. There are, however, no signs of buyers giving up yet.
Plan
The overnight rally has left an import area of support in the 2155.75-57.75 zone. If this holds and sees strong buying after the open, then I would expect at least a retest of the overnight high.
Failure to hold above 2155.75 puts the chances of a retest of the expected opening gap zone (2150.50-52.25) and breakout area (2146.00-47.75).
Holding below 2146 and particularly the overnight low would put sellers back in short term control and target the lower zones. However, unless there is major volume and momentum, I would still look for responsive buyers activity, in line with the longer time frame uptrend.