Yesterday’s price action traced out a downtrending price bar. We hit 886 (the 23.6% Fibonacci retracement value) before turning higher and closing at the high.
The move below 888.86 “perfects” the TD Buy Setup which was recorded on June 25. As pointed out in comments to yesterday’s post we may now see a 1-4 price bar pullback/consolidation. At this point I don’t expect the market to be able to confirm a break above the TD Demand line (down sloping dashed red line on chart) which sits at 924.97 today.
A question I have at this point is “Now that the Buy Setup has been perfected, how does the previous technical buy signal (see the Friday, June 26 posting) fit into the picture?” It is interesting that the technical signal came with an unperfected Buy Setup. Now that we have perfection is the market ready to charge higher? I don’t think so but it will be interesting to watch this play out.
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