Confirmation of a potential breakout past 14000.00 would allow market bulls to join the existing uptrend. They can open long orders just above this crucial resistance while placing their stop-loss orders around the dip of the last bearish pullback (around 13700.00). The significance of the latter is also confirmed by the fact that the 20-day MA (in red) is currently threading around it.
Notice also that the IXIS is currently developing a major Bearish Butterfly pattern, which signifies the likely upcoming termination of the underlying uptrend. This could happen around the semi-psychological resistance level at 14500.00, which is where bulls should consider closing their buying positions. In contrast, market bears can look for an opportunity to start selling around the same level.
Naturally, the SL area just above 14500.00 outlines the risk area for bears looking to catch such a reversal. On the flip side, they face an outstanding risk/reward outlook ratio for such a trade.
The major support level at 13550.00 (previous swing high) encompasses the first target for such a correction, whereas the bottom of the Butterfly (around 12800.00) underpins a deeper target.
Notice also that the IXIS is currently developing a major Bearish Butterfly pattern, which signifies the likely upcoming termination of the underlying uptrend. This could happen around the semi-psychological resistance level at 14500.00, which is where bulls should consider closing their buying positions. In contrast, market bears can look for an opportunity to start selling around the same level.
Naturally, the SL area just above 14500.00 outlines the risk area for bears looking to catch such a reversal. On the flip side, they face an outstanding risk/reward outlook ratio for such a trade.
The major support level at 13550.00 (previous swing high) encompasses the first target for such a correction, whereas the bottom of the Butterfly (around 12800.00) underpins a deeper target.
