Upward dynamics of the market is in progress, however the structure doesn’t have a full-scale corrective downswing and this might cause the lack of fuel for bulls. Thus the main expectation so far is flat or consolidation, where a correction will be formed.
Of course shorts are out of the question.
Local structure has signs of downward reversal. To keep such structure bears have to guard resistance 1658.00 (black trajectory).
But we also can’t rule out a break and further growth on such a strong mid-term bull market (red arrow).
Main scenario: Touch of 1658.00 and then decline in direction 1632.65.
Alternative scenario: Break above 1658.00 and further growth in direction 1688.00.
Shorts from 1658.00 to 1632.65.
Longs to 1688.00 (in case of break of resistance 1658.00).