major red trend line on daily chart signifies resistance as it has been breached so previous support now = resistance.
we have a symmetrical wedge formation(black trend lines) that has broken out to the upside but it may be classed as a false break out so one must be careful as the market could bounce. Technical Analysis states that the market has a tendency to revisit the break out level as it shakes out the rookies before resuming its original direction , in this its northwards.
The engulfing candle on the daily can't be ignored as it was accompanied with large volume, therefore I will be playing this inside bar and opening up a short position anywhere in the 1880-1860 region with stop loss @ 1890 and target 1820.
Comments
that is how it looks on p/f.thinking that we need to see support in the 1835 -1850 area