We just broke out of a descending wedge. Bears momentum are drying out. Shorts were at all time high therefore this could line up for a possible bounce. If we can see retest again at 3600, I will be watching it closely, because if we breakout with nice volume, that is a good opportunity to enter a long position. I measured my targets looking at resistance and Fibonacci retracement tools. These tools are usually most simple and most accurate, no need for fancy bs :) If we have a fakeout and drop below ~3550 i am closing my long position.
My first target is at 4000 area because of the resistance there.
Second target is at around 0.382 Fib retracment as it lines up with some resistance. We are still in a bear trend, so we need to take profits with small targets.
Finally if I see some momentum going I would close big position at 0.618 Fibonacci as this area is one of the most popular profit taking of Fib retracment. If we dont reach this, I would close the position when i see any signs of weakness.
Remember we are still in a bear trend, this strategy is for short term, long term we might have not seen the bottom yet.
My first target is at 4000 area because of the resistance there.
Second target is at around 0.382 Fib retracment as it lines up with some resistance. We are still in a bear trend, so we need to take profits with small targets.
Finally if I see some momentum going I would close big position at 0.618 Fibonacci as this area is one of the most popular profit taking of Fib retracment. If we dont reach this, I would close the position when i see any signs of weakness.
Remember we are still in a bear trend, this strategy is for short term, long term we might have not seen the bottom yet.