Can buyers take more control?
As per the prior post, there comes a point where the traders do say "Uncle" (i.e. enough it enough). That came against a support area defined bay the 200 bar MA on the 4-hour chart, the 50% retracement, old lows and a downward sloping trend line. The range for the day was also extended vs the recent average.
What's next?
When I talked earlier about retracements of trend moves - and the last move to the lows for the day was an extension of the trend leg (see chart below) - I spoke of the 38.2-50% correction zone of a trend leg.
The 38.2-50% of that last trend leg lower comes between 1.3205-17 (see chart below). If the low is in place, that area should hold. It may not mean we go and take out the lows next - although it could. It just keeps the sellers in control. It also says to me that the buyers are not taking back control as well. If the buyers cannot do the minimum - get above the midpoint of the last trend move lower - they are not taking control.
Now, if the price moves above the 50%, it says that the buyers have won a battle. Have they won the war? It depends on the next battle(s) (i.e. if the price extends above the 100 bar MA on the 4-hour chart at 1.3234 would be winning another battle). So I like to say, it muddies the water for the trend.
So far the sellers have come in near the 38.2%. The sellers remain in control. The buyers are not taking back control
