08 October Tuesday View

Yesterday price broke the resistance level 31850 (USD 1320.94) that has been holding since 02^nd October. Price is trading above an uptrend line which came into effect on 02^nd October and has been holding ever since. Break of 31850 (USD 1320.94) also shows a break of ascending triangle pattern which is a continuation pattern. If so, then the break out should take the price towards level 32860 (USD 1362.82). This view seems to be supported once the price breaks and holds above 32000 (USD 1327.16) level. Why ? well, looking at H4 chart the price is still struggling to break above the downtrend line which came in effect since the high of 34550 (USD 1432.91) level on 28^th August, tested with a lower high at 33050 (USD 1370.70) level on 19^th Sept, another closer lower high at 32300 (USD 1339.60) on 30^th Sept. Break and hold of 32000 level should indicate that this downtrend line to be broken and price may gain further.

On the downside, we have supports at 31500 (USD 1306.42), 31325 (USD 1299.16) and 31000 (USD 1285.68).

Fundamentally, with all the drama going on at Washington on funding bill and debt ceiling, as the day comes near to 17^th Oct, and the current situation remains unchanged, a spike to 33750 (USD 1400) can not be ruled out.

Trade Happy, Trade Safe :)