No explanations needed today! The bull flag target at 9410 didn't quite get met, but you knew it would be there abouts as 9400 was tested and held just above- close enough to be met.Just depends on where you take the base of the flag pole from. Just take it from where it looks right. No rocket science there then. 9280 is as good a place as the base of the first candle at 9289... Using 9289 would give a target of 9401.
How do we know the bull flag will break to the upside? Well, at first the last peak failed to make resistance at 9344 and preconditioned me to thinking it was going to fail .... but then the final low failed to make support, confirming the odds of a break to the expected upside. China white called a triangle on RSI here... maybe so, but not one I would like to bank on. What did happen, was the formation of an RS Switch, confirmed by the pullback to 9440 just after the break.Notice also how RSI failed to make support on the final low. This RSI channel had been in force for 90 minutes. Remember the longer a trend is in force, the more likely we are to get a big break.....The mini triangle in the price gave a target of 9400 as second confirmation. No ND tops to see anywhere so just sit tight. At 9400, there was a sustained drop in RSI down to 40 from 80 for no movement in price. What does that tell you? The sellers are not interested .Stay in there.
Now we get another RS Switch. Unusual to get two in a day. Now a test of 9400 again and RSI testing LOD at 40... Still no reason to get out, finally we end up with a flat top RSI to give us our 3 peak ND top and out at around 9470. Note that just because there is no down slope on the RSI tops doesn't mean it's not divergent.
Where to tomorrow? Closing at HOD can mean a continuation, BUT as we have had a large move today, It may be a case of too much too soon, so look for a drop to solid support at 9400.Top side resistance is at 9500.
With an entry at 9320 pullback, there was an easy 150 points on the table, and time for a leisurely stroll around the park. Alternatively, waiting until the bull flag broke out would still have give a healthy 100+ points.