We finally got the pullback we knew was coming. Now the question is, how aggressive will be the dip buying at this particular level?
My opinion is not much. For the first time past 8000, the FOMO crowd dried out and the pendulum is shifting the other way...and it was the FOMO crowd that got us through the 7000s in the first place. Now it becomes a balance between those panic selling and those wanting to buy the dip. There is nothing in the 7000 level that's held as support for long historically, so the most likely scenario is a continued drop.
So, the plan is to keep it simple and use levels that other traders will likely be looking at as entries. The Fibonacci retracement of this potential first wave of a new bull market can give some clues highlighting potential long entries. The levels sticking out to me are 6373, 5763, 5142, and as a last ditch defense to preserve an overall bullish sentiment, 4242. I'm going to disregard the .236 retracement as a long-term support level since we wicked so heavily below it, though it seems that we may hover above it for a bit before breaking below it. A strong upward move such as this one needs some cajoling and convincing if it's going to break lower.
The most likely level for support that I'm interested in is 5763 as a potential weekly higher low, which would look very healthy for the bulls in my opinion. 6373 is likely to find support as well, as we bounced quite strongly off that and I think it's a level buyers who missed out in this current move may begin to start stepping in with force.
So, a short entry here around 7375 (just below 4H exponential resistance with a stop above it) could produce nice returns with an eventual target of 6373, at which point we'll start looking to get long.
My opinion is not much. For the first time past 8000, the FOMO crowd dried out and the pendulum is shifting the other way...and it was the FOMO crowd that got us through the 7000s in the first place. Now it becomes a balance between those panic selling and those wanting to buy the dip. There is nothing in the 7000 level that's held as support for long historically, so the most likely scenario is a continued drop.
So, the plan is to keep it simple and use levels that other traders will likely be looking at as entries. The Fibonacci retracement of this potential first wave of a new bull market can give some clues highlighting potential long entries. The levels sticking out to me are 6373, 5763, 5142, and as a last ditch defense to preserve an overall bullish sentiment, 4242. I'm going to disregard the .236 retracement as a long-term support level since we wicked so heavily below it, though it seems that we may hover above it for a bit before breaking below it. A strong upward move such as this one needs some cajoling and convincing if it's going to break lower.
The most likely level for support that I'm interested in is 5763 as a potential weekly higher low, which would look very healthy for the bulls in my opinion. 6373 is likely to find support as well, as we bounced quite strongly off that and I think it's a level buyers who missed out in this current move may begin to start stepping in with force.
So, a short entry here around 7375 (just below 4H exponential resistance with a stop above it) could produce nice returns with an eventual target of 6373, at which point we'll start looking to get long.