Market
The market is consolidating over the last few weeks. You can see the bollinger bands starting to squeeze together. The consolidation has occurred after the big drop that occurred at the end of July and first of August. After the drop, the market regained the previous highs established as a resistance level in July. That resistance has been broken and is now acting as a support area during the recent consolidation.
You see the same sort of pattern also occurred at the first of the year. After hitting a resistance, the market suffered a big drop. The market regained the previous highs established in January and moved higher. Over the next couple of months, that old resistance served as a new support. As the bollinger bands pinched together in May, the market exploded higher.
As long as the current support holds, look for the market to make a similar big move up after the consolidating period as the bollinger bands pinch together.
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