Please go back and check my april 16 2017 forecast for this index, in which I forecasted a Three falling peaks formation in the mid term, as well as a falling wedge . Great forecast. I admit was confused with the falling wedge expecting for last week some corection, considering that several times the line rebounded that 98.75 level. What happened with the DXY 0.12% 0.13% index since last week took me out of my shoes, but only confirmed how critical is the currency in regards to the political tensions.
So, what now? In the tech analysis, I draw a paralel line to the line that touches the 0, 2, and 4 levels, or the line that before identified the rebounging points inside that falling wedge . That took me preciscely to the point that we are now, and that is also showing us our next movement, that is ..............., lets go BULL again, cause the bear party is over. Remember we are trading the purple channel, and that purple lines are the daily trends and the gross pink are the 4 hour trends for the RSI and Stoch indicators.
Let me explain it this way. If I´m expecting a fast movement upwards, for this trade we need tomorrow the US GDP show us some resilience that provide support to the US political situation. What a mess ........ you Trump.
Anyway, this is a 4.67 risk reward ratio trade. For this trade, EP 97.870 SL 97.85, TP1 99.054 (2.19 rr ratio), TP2 100.233, because our destiny again is around the 100.0 sicological level.