Interestingly enough both bullish scenarios were realised. Circled blue we see a bullish harami pattern near the 44700 level, supported by a cross out oversold territory. The black arrow shows the bullish break of both horizontal resistance and the red trend line. From current levels 46880 become the initial upside target favoured, while a close below the red trend line might be used as the failure level.
Last week the small head and shoulders pattern (labelled with red L, H & R) warned of short term weakness, although the oversold signal and larger inverse head and shoulders suggested keeping an upside bias to trades. We were awaiting a bullish reversal near horizontal support at 44700 or a break above the red downtrend line and 45730 level to initiate long positions.
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