Market Analysis

MCO Technical Analysis – Target reached, where to next?

The trading business is all about adaptation. Once a scenario gets invalidated, one should take a step back and re-assess their approach. That is exactly what occurred with MCO/USD. Initially, we had a bearish bias backed by price action, but that scenario got invalidated as price crossed the $4.495 level of resistance.

As market dynamics changed, so did our bias. Our target became $6.10 which was perfectly achieved and rejected today. What can we expect to happen next?

Naturally, as price is at resistance, we cannot be bullish until that resistance is crossed. Considering the bullish momentum of the overall market, that is likely to occur. Once the [$6.10-$6.65] liquidity area is crossed by a daily candle, then the next level would stand at $8.9. But until that takes place, we cannot make that assumption with a decent level of certainty.

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