mcm daily market update 20.Aug.21
ST trend: neutral
Yesterday we were mentioning that the ST trend was down, with potential bottoming attempt. That played out as expected, as buyers stepped in and pushed prices higher, avoiding the most bearish scenarios for the time being. The market rallied hard, pulled back around mid day, then bounced to close the cash session near the highs.
The o/n saw a pullback from there, with a grind lower. FGSI is showing both sides are inefficient, with large swings in both directions, but on small price movements. So the ST trend is up for grabs. Buyers did manage to keep this decently elevated and comfortably above yesterday's lows, which is a positive for them. However ML is still above as buyers couldn't hold the breakout above it from yesterday's session. As long as ML is overhead and acting as resistance, the buyers are not out of the woods. Yesterday's low is a KEY level for buyers to avoid a potential deeper correction. A sustained move above ML would reassure that the bottoming attempt from yesterday is playing out and the "OPEX scare" is over. Speaking of which, being a Friday OPEX, a large move in either direction is probably not going to happen and the market could whipsaw in both directions, but not really make any real price progress by the close. Just something to be aware of.