Price is now pushing further into the 9683 to 10561 (.618 of recent structure). For the short sighted, it appears that price will continue higher and higher, which is possible, but more often than not, resistance levels attract selling. The 9861 reversal zone boundary happens to be inside this wide which emphasizes the resistance even more.
Now keep in mind, there are plenty of signs that are still intact which can present a very conflicting situation. Price is maintaining a clearly , and the 8514 support (.382 of current swing) is still intact. With momentum still in play, higher prices are likely. The problem is the level of risk.
When I mention risk, I am talking about risk in terms of initiating new swing trade longs. Buying within this is like buying at 18.5K. Yeah there is some upside left, but if you are not nimble, or just distracted by greed, you will more than likely stay in the trade if it weakness sets in. Weakness can take this market back to the 8514 level which will be a perfectly healthy and normal retrace. Do you want buy now and take that chance?
In summary, temporary weakness can engulf this market out of nowhere, especially at these levels. Price can go as high as 10561 before any signs of weakness set in which can be very seductive. At S.C., we observe best practices which simply means we buy supports and sell resistances. As great as price action looks, the predetermined levels are what help us maintain consistency, even if it means sitting out during what appears to be "hot" market moves. We want to capitalize on the herd mentality, not be part of it and that means we wait for a retrace, no matter how far the market moves without us.
Questions and comments welcome.
Can you plz let me know :" and the 8514 support (.382 of current bullish swing) is still intact" in your text, 8514 support derived from 0.382 swing, from what point to point is this swing? I could not find the points to match this figure. The swing as I can see was from 6800 to 9990. Please clarify for educational purpose. Thank you again.