This dilemma is becoming closer to being resolved. The significant resistance level of the 41.4% retracement of the decrease wave has been broken but unfortunately by a pro decrease candlestick formation, i.e. the evening star formation (Pic. 2, green rectangle). Following this formation a decrease took place followed by the forming of a pro increase bullish engulfing candlestick formation (Pic. 2, violet rectangle). The market is unstable and just cannot decide which direction to choose. This often occurs within the range of the 38.2% and 41.4% retracements. Currently the breaking of the 72.17 level may not be enough to continue the increase trend and the level to be observed is 72.41.
Omar Arnaout
Omar.arnaout@xtb.com