On Friday Pound stopped right on a monster level, so the move up might be done, at least for a while. However, it likes deep W4s testing W2 highs (in a downtrend), so one more impulse to 1.4260-70 won't be any surprise.

Nope, it continued the blast. Watching the 87 area next (86.25 is the low end of the grouping), and with this much time left, if that is overcome, it may really finish strong.

Originally posted by jimkane

Bullish ABCD to send it to 87 area. But, in my experience with a big pop like this, if the buyers are still strong they would have come back in already, and if not, then this may chop for awhile longer. I'm not saying it won't sustain here, only that that is the lower probability case in my experience.

It's showtime. Big clue time.

This is a crazy monster area here. But, if they want to ramp it into the close, it won't stop it. If this was any other time I'd want to short the daylights out of it off this.

86.75. Deep in the heart of Texas.

Like I said, if it wasn't Friday into the close I'd be inclined to lean super-heavy on this right now. As it is, I see it only as a consideration for that highly skilled trader I always mention. And even at that, the 'risk' is not quite right. For the average KT methodology trader I'd lean towards some scaling here, and some still on, waiting to see if it blows it out i.e. the usual KT approach.

Now here's the fun part. It was bound to react, as it is now, off this area, in my experience. But that says almost nothing about if it will sustain, or zoom back up and over. Where it will drop to, though, will be an area, in my experience. And then it will react to that, up to an area. At some point, if one is good at reading price action, it will likely tip its hat. That's the moment I enjoy the most. Understand, too, if this was bound to head down, it could have just cratered off the area, and there would be no chance to assess the above.

See how it went to and sits on this 84.00 area?

Now say it bounces to 86.00 and starts to weaken slightly. The coil is formed.

In this case it looks very strong, and if it goes over now, with this small of a pullback, I'd be expecting a crazy strong finish, up to my almost 2100 area.

Okay, let's see. The battle is on.

It's been a wonderful week for me. I want to thank everybody for their comments and charts and I'm really happy to be included here. This is a breath of fresh air to be with a group like this. Thanks to all for putting up with my "newbie" questions and learning process. Hopefully I can climb the learning curve and be up on the slope where you all are! Everybody have a great weekend and will see you on Monday!