Review of market action for the week of 25th to 29th of January 2016:
To review the action of the whole week we use a 13,500 ticks chart and reduce the indicators to only XBP BB SR Level Upper, XBP Market Players and XBP Key Market Times. We recommend to keep this screen always open during your day trading to give you context of the action over the span of the last 5 trading days.
XBP Market Players help us to see at which levels big volume entered the market to mark either tops or bottoms. These levels will be kept in our trading preparation material as possible support and resistance levels for the following week.
This week we can see how the 1870 level acted as a good support level, holding during the early intraday session of Tuesday and during normal trading session on both Wednesday and Thursday. To note the 3 high volume blue bars on Wednesday. The higher the time frame the more significant are these big volume bars. Having 3 bars together is very significant and we can be sure that the big market players bought the market at that level.
Wednesday also gave us a good signal on the top side with 3 blue bars and 1 green bar at near the 1910 level. 1910 was the key level to break on the upper side as seen on Friday with a long up bar to broke above this key level, coupled with a rapid flip of resistance to support on the XBP BB SR Levels indicator.
For next week, I will be looking for retests of the 1910 level, which I expect to hold if to confirm the bottom of the market.
Remember, that these predictions are not long term but just for next week and are entirely my own opinion. Any trade you enter is exclusively at your own risk.