2-Hour Analysis:
Big Picture: The buyers’ efforts persisted and have done fairly well up to this point. On a daily time-frame, however, an encouraging development can be seen in the form of the Morning Star Pattern. This is a very reliable reversal/continuation pattern that completely favors buyers. However, the follow-on candle is still significant. Above 14.45, strength can serve as a bullish confirmation.
On the Upside the price is still stuck between 13.70 and 14.05 levels. However, with the morning star supporting the price action, demand could completely overwhelm this region. Above this, the 14.40 level must be surpassed in order to attract aggressive intra-day traders, who will then target the 14.95 to 15.25 level and possibly even higher.
The Downside remains unchanged, with decent supports available from 13.30 to 13.40 levels. These levels are now likely to elicit reasonable demand during testing. Holding on to these supports promotes the formation of a morning star pattern. However, the next strong supports range from 13.20 to 12.75 levels. At these levels, the previous sell-off was also limited. If these intraday supports are breached, the price will be exposed back to 12.30 levels, with the potential to fall even lower.
