We lost the momentum yesterday after we broke south of $8,000. A price I would have enjoyed maintaining. Will see if we hold. I've adjusted my EW analysis, assuming that what we saw the last week was simply a "wave 1". (I'd like to hear your thoughts on my EW analysis and see if you have a different POV, we're all learning).
Still tapering into the pennant. Still above 5-year log support. Now below 6-month resistance (again).
I'm out 100%, waiting and watching for now. Ended up with 8% profit for the week (too much trading, lost a few points). Looking for support now. Will it be $7,800?, $7,700?, $7,500?, $7,000???? The books don't tell much now. CME futures have a low of around $7,680, so that's a target I'll be looking at for support. I'd like to see $7,500 hold and prepare for another surge to test $10,000 again (finally) (CME has around $11,195 for the next "new high").
Don't forget, we're still in a big down-trend so trading here is dangerous. At the most we're 3 weeks from the end of this pennant. I'm looking for another pump above $8,500 to confirm bull rally possibility. As long as we stay above 5-year trend-line support we're moving up! But we are coming to a cross-roads here in the next month. The market will have to choose one way or the other. A break down sub $6,800-$7,000 would be quite the bearish signal. Time will tell.
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Bullish engulfing candle on the 6h pulled me back in @ $7,926. Stop set @ $7,777 (today's low)
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I bought back in @ $7,926 four days ago. Got stopped out at $7,886, then bought back in at $7,967 when we broke through the sell wall (or someone cancelled it), at $7,950. Enjoying break-out. Eyeballing that CME target at $11,195, but probably looking to sell just below 10K if this rally holds. I believe it will.