DAILY MARKET RECAP Thursday February 25, 2016

Posted on Thursday February 25, 2016
 
DAILY MARKET RECAP
Thursday February 25, 2016

Key Datapoints:

Key Developments :

  • Market Breaks and out Closes above resistance at 1950
  • This triggers 2 bullish trading patterns targeting higher prices. 

SUMMARY : 

Appears that the end of month window dressing is in play again as we head into the last two trading days of February with the G20 meeting over the weekend. Whatever the reason the price action remains in bullish mode after yesterday’s big move off the lows. The start of the day was rather choppy but as we do, we focus on the big picture price action. We came into the day leaning bullish due to the potential of a repeat double bottom cup/handle that we saw back in October. That pattern triggered with a close above the prior swing highs today, so it is important that we see upside follow through. 

The pattern I am going to focus on however is the smaller bullish cup/handle with a price target of 1987.70. This is going to be our primary focus as it is smaller and gives us the stops to keep us out of major trouble. If this pattern is to fail, the larger pattern will by default fail, and if this pattern is to complete, we will then re-evaluate the larger pattern. 

As you can see at the top of the report, how the pattern formed and the targets. 

 

The Bottom Line:  
With 2 bullish trading patterns now in motion, expectation is for higher prices ahead. The smaller cup/handle targeting 1987.70 is our focus and we will watch for bearish reversal patterns to appear that would put this target in jeopardy. Otherwise the path of least resistance is currently higher despite whether you think the 2016 lows are in. 

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