Price Action: Squeezes, Why and How Much

Yesterday’s bull case was as follows:

“Bull Scenario: Hold above 3940 (ideally 3960) through all consolidation. Target 4010. In the unlikely scenario of a reclaim at 4010 price squeezes to 4070.”

Despite the resistances between 4010 and 4070 I believed that a reclaim would result in a squeeze. Here’s why:

Recall the plan from 1-18-23:

The bull case for the above chart stated:

“Bull Scenario: Hold 3970-75 in all consolidation. This targets 4055-4070”

Price however dipped and fell off prior to reaching upside target. Reclaiming the prior held zone of consolidation undoes that failure and squeezes to the original bull target. Today’s squeeze returned exactly to the 4055-70 zone, or the 1-18-23 target.