6431 to 6614 is the .618 minor resistance relative to the recent structure measured from the 6850 peak. Generally it is not the most attractive location to initiate new swing trade longs, but an exception is possible depending on the candle formations.
At the moment, there is nothing that offers a long trigger that would be worth making an exception for. With a present, a break below 6414 would be a sell trigger according to the swing trade criteria that we follow.
At S.C., we always make it a point to follow best practices. That means aiming to buy near supports and selling near resistances. Since we do not short these markets, buying near a support would be the basis of our next swing trade idea. And the anticipated support is between 6126 and 5977 (minor .618 support relative to the current swing).
There is nothing for us to do but wait, especially if price drifts into the 7120 reversal zone boundary. With the U.S. holiday affecting the entire week, false breakouts are very likely which can lead to a sharper correction.
In summary, at S.C., we are anticipating a higher low formation following the next retrace in this market. This scenario would signal a broader move is in progress. That is where we plan to initiate a new swing trade long. Until then, we wait and monitor inventory that we accumulated across the board while these markets were looking their worst (we published a number of articles on S.C. about our purchases).
There is no hurry to buy, especially in a holiday market where noise and lower is typical. Either this market will retrace and offer a higher low possibility, or consolidate and squeeze into the reversal zone. S.C. is where we will share a new trade idea if this market offers one. Otherwise we continue to wait.
Please allow me to share.
Seems like the buying pressure has cool off for now, and it may be in time for a minor retracement.
Nonetheless, I am seeing levels such as $6359 & $6167 as typically strong supports. (See Charts)
So, if you looking for long, wait and prime your long positions in these areas. If you want to long, wait first.
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That said, this feels more like a bot war than actual people trading this level. So, I am leaning bearish. With a short entry at 6750, I feel quite confident with my position.
Worse case scenario, I stop out with a profit and will likely reposition again.
Again, nothing about this level feels organic. That is usually strong indicator for things to turn bearish.
@MarcPMarkets , this time you ar enot antecipating a posible yearly lower low.. The fact is, price can, indeed, close the week or month in the lower 5k. Any opinion about this? Did you plan to place a buy in the case of extreme low formations?
A Candle shows the momentum of that moment only.