- Tuesday’s candlestick (Aug 12) was a bull bar closing in its lower half with a long tail above.
- In our last report, we stated that traders would observe whether the bulls could generate follow-through buying, even if it were only a bull doji, or if the bears would be able to create a failed breakout, closing the candlestick as a strong bear bar instead.
- The market traded higher but closed off its high (long tail above candlestick). The bulls got follow-through buying.
- The bulls got a retest and a breakout above the July 24 high.
- They want another strong leg up that lasts for several weeks.
- They need to create follow-through buying over the next few days to increase the odds of another leg up.
- If there is any pullback, they want it to be weak and sideways.
- The bears were unable to create follow-through selling in the last four selloff attempts (July 7, July 11, July 15, and July 22). August 4 was the case again.
- They want a reversal from a wedge pattern (Jun 20, Jul 24, and Aug 12).
- They want the move to lack follow-through buying, forming bear bars.
- Production for August may be flat or down.
- Refineries' appetite to buy looks decent recently.
- Export: August export up 23% in the first 10 days.
- The market formed a retest and breakout above the July 24 high. The buying pressure remains stronger (tight bull channel, strong bull bars) compared to the weaker selling pressure (no follow-through selling).
- For tomorrow (Wednesday, Aug 13), traders will see if the bulls can create more follow-through buying. If there is any pullback, traders will assess its strength, whether it will be strong or mostly weak and sideways.
- Or will the bears be able to create some selling pressure (strong bear bars) instead?
Andrew
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.