We are in a parallel channel for a while now. Support at 7300-7400 has been holding the price up. And it has been not only tested but it was able to stop and rebound price sharply for 3 times now. During the first two times, the top sold out fast. However in the highlighted area, sells had hard time pulling the price down. For example, the price took only 2 green candles, to go up to 7500, but look a significant time for sellers to bring the price down back to 7350 where it started it's up rally. This shows a change of polarity in the market. The channel has now changed from a seller dominant to a buyer dominant channel. A breakout from this channel might be a good time go long. Two ways to trade this.
1. Buy at the bottom of this channel. And be the lowest wick coming out your stop.
2. Buy at the breakout from the top which high volume, keeping your stop at the prior swing low before the breakout happens.
3. Shorting the top at this moment is not advisable as market seems to have changed sentiment.
Note: If you buy at the bottom of the channel, be sure to look out for buying slow down to book your profits just in case it fails the breakout.
1. Buy at the bottom of this channel. And be the lowest wick coming out your stop.
2. Buy at the breakout from the top which high volume, keeping your stop at the prior swing low before the breakout happens.
3. Shorting the top at this moment is not advisable as market seems to have changed sentiment.
Note: If you buy at the bottom of the channel, be sure to look out for buying slow down to book your profits just in case it fails the breakout.
Trade closed: stop reached