RANGE DAY AND THE BOTS

WE become accustomed to a BOT BO  with a +5 and +10 trend following.  Today, PA did long with a LB BO to +5, then failed about a point short of the +10.  Price began to consolidate and by b12-14 we have a 50CB setup inside the consolidation range.

The short moved back to the LB where the PA found support.  It was stated in the chat that bulls are looking to establish 1200 again as a base.  This close, the bears will continue to push price away from the 1200, but eventually will give in.

By the b25-26 area we see a LB Reversal with target 1 and T2 set.  An earlier stop prevented playing those targets, but they were presented in the chat, and they did hit.  T1 and T2 should hit based upon our belief that a BOT reversal tends to run to the opposite level.  In this case, the LB to the SB.

The SB provided support, and was a long consideration.  Reasons included a 20 point run from the HOD, the two LOD test candles, and the SB support.  The ratio was 5:2 (five points to the EMA and two points to the LOD).  Another trader noted the 50CB as well, and took that long.  A good read and trade.  The point being, if you are not sure of the BOT entry, other setups appear and should be considered.

The SB long exit was a tick or two below the EMA, where we see a EMA/MB resistance that providing selling to retest the LOD.

A new LOD was established at SB +5, and then reversed to establish a "W" pattern test of the 50CB.  Once a 50CB is set, it is worth monitoring.  Another SB long was taken with a T1 at the MB.

All-in-all, a range day with BO's on both ends into the UTR and LTR.  A range day waiting for a break out.  Tomorrow's BOT may offer a clue, and we will look for a tight BOT range that can be easily broken.