Friday was day two consolidation after a large trending up day on Wednesday, and it was also an inside day, setting a large trending day, and it could trend large on Monday.
Daily trend is up, but it is now going into a parabolic mode, vulnerable to a sharp reversal down.
The 60-minute trend is also up, but setting up a bearish divergence on a break above the high.
The key to a trending move is the opening that is outside prior trading range. Opening outside prior day range sets up a large trending move in the direction of the breakout, or it can set up a large reversal day, which is a trending move in the direction opposite of the breakout.
On Monday, the key price level will be prior day high and prior day low.
-- Opening above prior day high is an indication the trend is up, as long as it does not break back into prior day trading range.
-- Opening below prior day low is an indication the trend is down, as long as it does not break back up above prior day low.
A break back into the prior day trading range, after opening outside prior day range, is a indication of a reversal day.
