Multi-Flips and Price Importance

BOC Rate Statement and Monetary Policy Report

Good afternoon!

We’re coming near the end of the month and this is quite important as we enter the wider range bars of potential exhaustion or continuation. As I mentioned last week, there was a great deal of importance between October 15th-17th, specifically in terms of price being met. The theme was potentially a slower, calmer week, with a slow down in events and catalyst. This could mean potentially slight expansions to the upside but overall range-bound. “This can imply continuation or slight consolidation as there isn’t a whole lot to of pressure to push price downwards.”

Since we had met our minimum conditions the week prior on October 9th, at 5799.25/5800.25, this extends us until October 23rd. We also continued to avoid back-testing the channel that we have yet to digest (5833-5838-5848), which implied continuation to the upside. As we know, if that channel area is tested, high odds it’ll get swept back down to the zone (5788-5806-5812-5822). And since we had met the condition of price meeting 5852-5866 area, odds remained high for core breaks by October 23rd, under the condition that a MINIMUM of 5910.50-5912 would be met by October 15th/17th, with 5922-5923 being core and 5931-5936 area being the most ideal. We met the minimum condition of 5910-5912 on October 15th and then stalled at 5927.25, on October 17th. This helped extend our odds through month-end, since 5922-5923 was met, but left a tiny bit more room on that upside which is where volatility can arise. So what does this mean for us this week?