Wednesday, December 16, 2009

Break of Narrow Range


Today had a super-tight opening range/swing (1 point) and a super-tight first hour (3 points). Waiting for the FOMC announcement usually does not create such narrow ranges, but it's been "quiet" the last few weeks anyway so it's not surprising. The chart above does show movement out of that 3 point range after the 2:15pm EST announcement. Analysis can highlight a break of the range at 1108, two tests of the midpoint (yellow line) and 1109 opening swing high, and an eventual swing down to the 1103/1104 area. This has been a high volume area in the past, as well as last nights Globex low, so support could be anticipated. A buy-scalp worked here going into the close, much like yesterday's closing swing up.

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