Price was relatively stable over night and the ranges were unchanged. The difference? Price was expected to make a run on the 1521.
[07:40] <CM> 1521 upper target today with a 2-2.5 point allowance for a failed break out or exhausted run stalling.(1523-1523.5) a gap between price and 1521 or the 2-2.5 stalling would likely sell off back to/near the 1516 support
1521 was the important resistance. Price has two choices when a target is in play and expected to exhaust (trend end).
1. Price falters just below the target and reverses.
2. Price exceeds the target and falters in a 2 to 2.5 point range then reverses.
When price follows either, it is likely to sell off back to (or near) the original break out target. For price below the range, it would buy back to the range.
This return to the range (buy or sell) is a test of support/resistance before the next push by either the bull or bear.
Option 3: when we are anticipating a break out expansion day, price will run the target and move another 5 points., albeit today was an exhaustion day.
The three option for a break out, all depending upon the day type.
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