Thursday Evening 27 June 2013
The developing market activity could be providing a great short entry tomorrow IF
we see signs of failure within the current rally. We often speak about not “predicting”
what a market may do, but to follow developing market activity as it confirms its
If we do not see an indication of a failure in the developing rally, then there is no trade
to be made. We do not know how the market will develop on Friday, that is not our
job. All we need to do is be prepared for the possibility, based on the market’s position
and context of it within the trend.
We identified an area where price accelerated to the downside, noted on the chart. The
high of that bar, [actually any portion of it], represents potential resistance. We say
potential because it has to be confirmed, and that confirmation will be how the market
responds to it.
Thursday’s bar was the smallest in range, or the three, and on the lowest volume. The
market is telling us that demand is not there.