Matt Simpson, CFTe, MSTA
CityIndex
Price has stalled at the 9800-23 resistance zone and assuming no significant gaps today at market open, it may provide a swing trade short to finish the week off.
Price barely broke above 10k before forming a topping pattern and promptly reversing. However, whilst the near-term still appears more on the bearish side it has not quite invalidated the inverted H&S. pattern highlighted previously.
Price has formed a Hanging Man below 9800-23 resistance and I see potential for a bullish wedge to be forming (which still allows for further lows before turning bullish.
Going into today's session we require no significant gaps to have occurred for this setup to [hopefully] work, but as long as we remain below 9800 then I suspect a retest of 9580 is likely.
Another confluence is that price could not convincingly beak above 9800 despite positive PMI data for both Germany and Eurozone, so this does raise questions about the sustainability of the bullish ruin from the July lows.
A break above 9800-23 could meet resistance at 9900 (round number; Swing high; Monthly Pivot) so I am standing aside for bullish setups this week.
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