Retail sales could not push the price outside the channel for long
Before the retail sales, the market was setting up for a move outside the channel that has been forming this week. Seconds after the report, the price extended below the lower extreme and even below the 200 hour MA for an ever so brief moment. That was "break" was not to be, however, and buyers pushed the price back higher. The 100 hour MA above had a similar breach but topside trend line was there to stop that move. The market is settling with the price below the topside resistance from the trend line and 100 hour MA, and above the bottom trend line and 200 hour MA (green line).
For the week, the high was reached on Monday, the low on Friday. Today, the price will close higher. The 200 hour MA caught up with the price and held on the test. Also, the 382.% of the move up from the November low (on November 2) to the November high (on November 9), helped hold support as well at 122.317.
Traders in the new week will use the boundaries to provide the bias in the new week. Break above the upper trend line and 100 hour MA and some may be calling the sideways corrective move a bull flag. Traders will be eyeing the week high at 123.595 as the next target.
Move below the lower trend line and 200 hour MA and they will be looking for a further corrective move lower with the 50% at 121.92 and the 100 and 200 day MAs at 121.719 and 121.238 potentially in play.
