Yesterday price made a new ATH but a lack of buyers there created a weak high which as expected overnight price action is drifting away from. We’re seeing it come into our 10-day value area with a POC around 507.80. There’s quite a bit of value built up here from several days of flagging, what we would expect is for price to pull into prior value and move sideways to up over the next week. But for today, we’re just worried about where it lands.

Overnight has not quite broken below that 510 support to start heading to 508, there is a possibility it bounces here and head back to 511, 512. Though that chance is low it’s still there and we’ll add it to our overnight gap scenarios:

1) Gap and go – Price breaks 510 target 509.59, 508, 506. Look for support in the middle of that range as a potential pop back to 510
2) Gap and crap – 510 holds price, target 511 and overnight halfback around 511.43. Look for resistance here, but above that is 512 and above 512 we’re in yesterday’s range which is very bullish, target 513 and higher
3) Gap and sideways – 510-511 provides very little support but it’s possible for volume to start building here, if price settles here I would be more on the bullish side but look for a break into scenarios 1 or 2.

William Wallace