This week’s continuation of what’s become a 4-MONTH uptrend has finally nudged above Sep’19’s 19.75 high to not only produce the highest prices since Sep’16, but, in fact, break the secular bear trend from Apr’11’s 49.82 all-time high. The trend is up on all scales and should not surprise by its continuance or acceleration.
It is interesting to note in the monthly log scale chart above that the market is nearing the (20.285) 38.2% retrace of the 7-year secular bear market from Apr’11’s 49.82 high to 18Mar20’s 11.64 low. But this chart also shows a rare bullish divergence in MONTHLY momentum that breaks the secular bear market and exposes at least a major correction of this bear and possibly a major reversal.
The daily log chart above and 240-min chart below show the trend is up on all scales. Former 18.90-to-18.95-area resistance, since broken, is considered new near-term support.
As with all trends, this continued uptrend leaves a litany of corrective lows and risk parameters for all levels of risk profiles from yesterday’s 19.24 micro corrective low to 09-Jul’s 18.83 short-term corrective low and finally 15-Jun’s 17.015 larger-degree corrective low and key long-term risk parameter.
A bullish policy and exposure remain advised with traders using the corrective low and risk parameter commensurate with their personal risk profile to rebase and manage the risk of their bullish exposure. Until and unless the market even defers, let alone threatens or breaks this new secular bull market, its upside potential is indeterminable. It could peak out today or extend for weeks or months as it has reached an area totally devoid of any technical levels of merit above it. In effect, there is no resistance. The only pertinent technical levels exist only below the market in the form of former resistance-turned-support and prior corrective lows identified above.