mcm daily market update 7.Feb.22

ST trend: neutral

On Friday we were noting that the ST trend was down, with potential bottoming attempt, as we had an unconfirmed low on FGSI and buyers were attempting to bounce from that area. We mentioned danny and 400bar MA as being important near term, while ML test being the "real test". Buyers did manage to test macro-ML after breaking danny, but were quickly rejected there. However they managed to hold a higher low vs the unconfirmed low and then staged a very impressive rally to win back macro-ML and ML, before peaking in the same 4530-4540 area. The decline into the RTH close was vicious and broke back below ML.

Sunday's session didn't do much, price whipsawed around ML neither side being able to make the breakout/down stick. Today followed the same pattern, with price spending actually more time below ML than above. Nonetheless buyers are attempting to breakout again now. We have both bullish and bearish EE on FGSI, so those lvls are important to confirm the direction after price moves away from ML.