BO BONANZA. In the Saturday outlook we were waiting, Patiently waiting. Range runs are good, but BO's are super. The markets opened with a continuation to the BO-5 and was relatively quiet until the Euro Zone trading. As mentioned, PA was trapped in a range 1383-1395 and the BOT Ranges were unchanged. Watch for the reversal back into the range or a BO of the 1395. Either way, we have plays for each.
PA sold off at the Euro Zone Open (roughly 3 AM EST) but failed to break the LB. For new readers, We use a calculation which predicts the range of trading expected for the 24 hour day. This measure has a Break Out Target (BOT) for longs and for shorts, These BOTs are where one side will dominate the trading. A FBO at this area or a FBO at the BO-5 level above/below the BOT tends to reverse for a run to the opposite level.
At 3:40 AM EST we test the LB and buy signals hit, but PA stalls in the bearish channel and re-tests the LB. An ascending triangle develops around 4:40 to 5:40 AM EST and we have a host of long signals hit: LB support, a buy TL in play, EMA BO, and, very important, a BO of the bear channel and 1395.
PA gaps to the buy TL continue as bullish signals and PA runs for a BO-10.
The 50CB level of the extended bull bar around 8 AM was never challenged- another bullish indicator. The EMA holds PB's as PA challenged the previous resistance at 1407.
We began with a AT BO and find another ascending triangle late in the day. The upper level was roughly at the BO-15. It broke and was seen as support , along with the EMA, on the PB. Near the EOD but this was a low risk long to 11.5 area as a minimum.
With PA range bound, a return of the BO plays was a mater of time. An extended range bound period will tend to produce an extended, bold Break Out run..
TODAY was bold....
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