On the daily chart below, we can see that the sellers are having a hard time resisting the buying momentum. We can see from the multiple candlesticks wicks how the buyers keep stepping in aggressively trying to break above the trendline and the resistance at 32684.
The moving averages are still crossed to the downside which keeps the downtrend intact, but a break above the resistance would be a bad omen for the sellers. There’s a lot of strength on the buyers side as they keep resisting all the bad news that’s being thrown to them.
From the stress in the banking sector to the Fed keeping at it, nothing seems to be able to kill this market.
On the 4 hour chart below, we can see that the price is now at the trendline and the 32684 resistance. This is where the sellers should step in in defence of the level with defined risk, and target the low at 31645.
The buyers, on the other hand, will need a break above the resistance level to get more conviction and target the next resistance at 33538.
In the 1 hour chart below, we can see that the selling momentum out of the FOMC decision waned in the following days as depicted by the divergence between the price and the MACD. This is generally a signal for a pullback or sometimes even a reversal in the trend.
For now, we got the pullback, so the sellers should be better off now that the price is at a strong resistance. In case the price breaks above the resistance, then we may be in front of a reversal and the buyers may pile in aggressively.
