mcm daily market update 22.Oct.21

ST trend: up

Yesterday we were noting that the ST trend was neutral, as both sides were showing inefficiency via FGSI. We were also mentioning that a ML breakdown was avoided by buyers and as long as that lvl continued to be defended, the buyers would continue to have the edge. And a break back above 400bar MA would suggest a run to the ATHs. That is exactly what came to pass. ML was defended twice during the cash session, 2nd time a SE also came to the rescue and buyers pushed from there right into a new ATH.

The o/n saw a choppy sideways session with initial pullback being bought and then price finally pushing to new highs. Buyers continue to hold the upper hand as the potential topping patterns on the GSIs keep getting busted. We are in a giant up squeeze since 13th of October, with very limited pullbacks, so once this momentum fails, the snap-back could be quite violent. However until ML fails in a sustained way, the main trend is still up and no reversal is confirmed.