Consolidation to go higher?

In order to remain flexible for short term trades one has to look at both bull and bear side. At this point I am in slight favor of a bit more downside however we have a good risk/reward ratio for being carefully bullish at this price range.

I outlined the chop zone range breakout confirmations in the long blue rectangle. As long as we remain in this range we cannot be sure of direction. We can even go all the way down to the close on Nov 9th and still be considered in the chop zone.

Now here is whats interesting. After entering the zone of naked option holder death we had seen a repeated pattern.

3 days on the upside, 2 days on the downside. Now on our 3rd attempt we remained in the upper range for 5 days and attempted to break out. We failed to make that happen through an overnight GAP above resistance and reversed lower but did not sell off right away. We are now back on the lower end and its closing on the second day.

So the question we have to ask ourselves.

1) was this a failed breakout and we are done? (done short term wise)

2) or, we did not have enough distribution at the top of the range and needed to come lower one last time to be able to break the overhead resistance.

Both are still very valid and even if we break lower here towards the 1070 range, this still has enough power to push through the upper ranges as we will be quite oversold once we reach 1070.

No decision yet ... but as mentioned I am 51% on 107X first. If we do breakout higher tomorrow then I think we can be confident of higher prices and a break of 1120. But let the market the market show us where it wants to go.