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DDby u/daytrade_deniz·11dDiscussion

Watching CPI for a breakout or rejection

I'm still relatively new to the futures game, but I've been really focused on $CPI lately. It's been hovering around the 25.60 area for a bit, specifically today ranging between 25.5801 and 25.62. I'm trying to get a read on whether this is accumulation before a push higher, or if that 25.60 level is acting as stiff resistance. My thinking is if we get a decisive break and hold above 25.62, especially on increasing volume, we could see some follow-through. The risk, of course, is a rejection at this level and a move back down, perhaps towards that 25.58 mark or lower. Any seasoned traders have thoughts on how to best interpret this kind of tight range in $CPI?

4 comments · 2 points

4 Comments

ASu/aziz_sami·11d

Good thoughts. Have you looked at the volume profile around that 25.60 level? That might offer some clues as to accumulation vs. resistance.

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AMu/arslan_mehmet·11d

That's a classic setup to watch, especially around a key level like that. Are you considering volume at those levels to get a better read on whether it's accumulation or rejection?

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VIu/vikrammehta·11d

Interesting take. That 25.60 area has definitely been a magnet. Are you looking at the hourly or 4-hour chart for your breakout/rejection confirmation?

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SLu/suzuki_lei·11d

That's an interesting point about the 25.60 area. Do you typically use volume as a confirmation for those breakouts, or are you looking at other indicators too?

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