Signs of mounting inflation have weighed heavily on stocks this week. That could lead the Federal Reserve to raise its target for short-term interest rates sooner than it has signaled, potentially impacting the stocks and other assets that have benefited in the last year of near-zero borrowing costs.
Technical overview:
In the coming days, we expect the price to enter a consolidation phase that could reach the resistance level that we highlighted above the upper channel line. The price could also continue making one new 4H low before starting this pullback, but our focus will be on how the consolidation will develop. Will it go impulsively towards a new record top or it will pullback before witnessing another bearish impulse? It remains to be seen. In any case, at least a short-term bullish move is expected. Trade with care.
Best regards, Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
Commento
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The low has been broken once more. If we get a consolidation here, after this impulse, then the chances will increase for the trend to become bullish.