CPI Week - Mid Range
Smack in the middle!
Good afternoon!
It was quite the week after tagging both ends of the trade in terms of max upside and max downside range. We not only triggered 7022-7028 failing 7032, but we also hit the downside and sustained 6752, just merely sustaining our 6744-6752 max downside range for the week. This put a ton of pressure to get things back to the point of stabilization/neutralizing aka 6922-6932-6942-6948 range. The best odds were clearing back over 6958-6966-6971 but that would have put pressure to head back over the zone (6988) and re-attempt 7028.
Starting the week off in a channel and nesting right back there with slight progression (6942-6944-6948 range vs 6933-6935-6938), implies odds are still in favour of retesting upside but can still have a slight risk. This is what keeps range compressed/recycled and PA directional in both ways. While 6945.75 pin can lean slightly more bullish, we have some conditions to meet to kick off the week to keep odds favourable for bulls.
With CPI being this week, that can put some odds on the table of meeting new ranges, but first lets first review and set some conditions for the week ahead.