In the weekly chart we can observe the bullish signal that triggered the slow Stochastic at the end of September. in the last two weeks it seems probable that price is consolidating the recent rally (Flagging).
Above the breakout zone of 32.78 we have two resistance zones: a) The 20 dma = 33.57; b) Resistance trend line in the area of 34.24.
The support is at the weekly gap = 31.29.
In the daily chart we can see that the assumed "flagging" could have formed a bullish falling wedge. The issue is that unfortunately I don't know if the wedge is set and done (It needs to reclaim the 50 dma = 32.30) or there is one more down leg in the cards before the break out.
Hence even though the bias is bullish the short-term outcome is uncertain.
Since in the shorter term time frame we could have an almost completed impulsive advance if a Triangle pans out which should open the door to a pullback (But higher prices should expected afterwards) I might go long with a smaller size than usual and a tight stop in order to profit the potential thrust higher. Then I will decide what to do.
