Review of market action for the week of 8th to 12th of February 2016:
To review the action of the whole week we use a 13,500 ticks chart and reduce the indicators to only XBP Bulls and Bears Support and Resistance (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 BB SR Level Upper help us to identify the levels where the market forces flipped from one side to the other, for example a red line marking a support is when the bulls take over the bears. XBP Market Players highlights with blue and green bars the levels at which the big players have entered the market. With both these indicators we can easily identify the main support and resistance levels based on volume action. XBP Key Market Times help us to split the intraday session from the normal trading hours session.
Key levels identified:
(1) 1920: This level was identified in past weeks reviews and it became the top of the week. We can see intraday green volume bars which are always very significant. Watch this level for a possible break to the upside if crossed or a return of the bears if proven to hold.
(2) 1910: A chain of interesting events happened on Thursday and Friday at around 1910 level. This level printed 3 volume supports on Thursday but on Friday printed 2 resistances (and at the very last moment a support). When these flipping forces events occur are always signal of a key level.
(3) 1870: Bottom of the week and previous key level.
Outlook for next week: The bottom of the week remains at 1870, also a previous weeks key level, and the top at 1920. The events on Friday around 1910 level could be the key for next week, which could turn bearish for the first couple of days.