Last Update: 5/15/2017
Since my last update I’ve been talking about the “Neckline” retest (see PART 1), and I think we did see that retest today right on that “Neckline” level at 139ish (above chart was screened during the mid-day). I am still open to a possibility of pullback to 138.40-138.00, and that would still be a constructive bullish move before bouncing back up. However if we do see a follow through to the upside next few days, I think we probably get back up to 141ish pretty quickly here. I did add more Calls at 139.30 during the mid-day today on that “Neckline” retest, so now I am still holding calls (full positions) since 136.53, 138.46, 139.30, & 140.18.
Several things going on here technically: 1. Rising “50EMA” has been acting as support last several sessions here, and today’s gap remains open 2. Last three days we have formed “Morning Star Reversal” bullish formation that requires a confirmation 3. Once it clears well-above the 139.20ish “Breakout Zone,” that Morning Star will be confirmed and the 50EMA will continue to rise showing accumulation. Above “Breakout Zone,” I summon, Russell (IWM) is going to get to new all-time high pretty quickly above 141.40ish. Let’s see how it plays out in the next few days here. I am still holding my Calls since 136.53, 138.46, 139.30, & 140.18.
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