Over the last seven days I have been calling for a reversion to the mean after overselling on the 9th and 10th. For me that means a retest of the 12 period EMA on the daily chart. That is where I expect to see strong resistance from the bears lead to an eventual breakdown of $6,000 support.
I have been holding onto my short since 6/4 and am still feeling very confident about my target of $4,975.
We are currently trading at a resistance cluster on daily chart: horizontal (white), trend (red), 12 day EMA (teal).
Over the past week I have been listing a number of trade setups. The one I like the most is opening a short for 50% of your desired position at the current level of resistance. If the price does rally through then you can add on the rest of your position at $6,950 - $7,150. If it doesn't then you can add the rest after getting a new swing low (below $6,300)
I do not expect the rally to be able to sustain through that price. My stop loss is still set slightly above that area. That is due to the Bill Williams Fractal on the daily chart.
The four hour chart just closed a shooting star at the resistance cluster mentioned above. That is a good indication of this rally coming to an end.
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I have been holding onto my short since 6/4 and am still feeling very confident about my target of $4,975.
We are currently trading at a resistance cluster on daily chart: horizontal (white), trend (red), 12 day EMA (teal).
Over the past week I have been listing a number of trade setups. The one I like the most is opening a short for 50% of your desired position at the current level of resistance. If the price does rally through then you can add on the rest of your position at $6,950 - $7,150. If it doesn't then you can add the rest after getting a new swing low (below $6,300)
I do not expect the rally to be able to sustain through that price. My stop loss is still set slightly above that area. That is due to the Bill Williams Fractal on the daily chart.
The four hour chart just closed a shooting star at the resistance cluster mentioned above. That is a good indication of this rally coming to an end.
Thank you for your time! Have a question? Leave a comment! Smash the follow so that you don't miss out on future updates and remember that clicking the like is good karma!
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