100 bar in MA on 4-hour at 1.3160Traders last week, made a big deal about the 100 bar MA on the 4-hour chart. Whenever the price approached, the sellers entered (see blue circled numbers). When the price broke above, the price scooted higher. When the price headed back below in the early hours of trading on Monday, the sellers returned with momentum. That was then.
I thought traders would respect the level again today (see prior post). It did not. Instead buyers went through the level with no problem.
So will it now hold support? Will the 100 bar MA at 1.3160 find buyers and keep the buyers in control? The break on Friday, failed in the first few hours on Monday. This is now the 2nd break above what was a key resistance level. Hold and the 200 bar MA at 1.3190 is the next target. Move back below and the buyers on the break, may become sellers on the failure.