Grand Rising Traders,
9:00 am Sunday, June 2, 2024
As anticipated in my previous update, we spent the weekend compressed within the defined consolidation range. Price action played out just as expected by remaining capped under the 68,923 resistance level throughout the low liquidity period.
The sideways grind ultimately narrowed into an extremely tight consolidation around the 67,500 area. The range has contracted significantly, with each marginal breakout quickly failing as the market lacked energetic participants to sustain any directional bias.
If the bulls can muster a strong surge, either driven by a catalyst event or simply an overdue release of compression energy, we could rapidly clear the 68,923 barrier. A clean break above that level could quickly target a retest of the next major resistance around 71,500. That was the swing high from last month's failed breakout attempt.
A weekly close above 71,500 would confirm a genuine uptrend reversal. It would also offer a more promising outlook for a potential impulsive move to surpass the cycle highs of around 75,000 in the coming weeks.
Of course, the bearish scenario cannot be ruled out entirely. A weak breakout attempt that fails to sustain could lead to another reversal back into the range. In that case, I'd be watching for a bearish breakdown under 66,500 to accelerate towards stronger support around 63,000.
But for now, my bias is to anticipate the path of least resistance to be trending higher. The longer this sideways chopping continues, the more powerful the eventual resolution swing could be. I'll be monitoring the price action for signs of continuation or distribution around the key levels mentioned.
Stick to your strategies, manage risk responsibly, and get ready to finally potentially break free from this extended compression phase. I'll reassess the landscape in the coming days once we get some clearer directional movement. Stay focused, fam.
This is the Dark Sage signing out - peace!
