December candle was an “expanding range candle” which means that it includes an impulsive bullish move. After the close of the November market, we can form a parallel channel into which we can see the range of the impulsive move. Currently, we haven’t even retested the 50% of that range which could be seen aa s bullish consolidation around the range highs.
Also price took out the December monthly low. This means many late longs may have their stop losses around those levels. These stop losses are now hit. Finally, we had a higher close. So what we have here may be: • Bullish consolidation at range highs of an impulsive move • Lower low higher close pattern on a monthly candle (Stop loss hunting candle) • Clear stop loss level at Jan low at 89k. This low must hold on a monthly and even weekly closing basis.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.