This price action is tricky to say the least. The outside bar that developed and triggered the long was followed by a which has taken price back to the 8412 level (.382 of recent swing). This formation has established a lower high formation off of the 9K area. Is this the beginning of a new movement? In my opinion, NO and the reason is: price still has a good chance of producing a failed low formation just above the 8090 level (minor reversal zone boundary). If this scenario unfolds, the swing trade will be stopped out, but if a reversal pattern develops in this area, I will be looking for another long.
If you missed the swing trade entry, you still have a chance to get in but a long trigger needs to occur. This can happen in a number of ways which I am not going to explain here.
What IF price breaks below 8093? That would increase the possibility of retesting the 7776 and 7401 areas respectively. Remember these areas are supports, and shorting into them is extremely risky unless you know exactly what you are doing and have the ability to exit the market quickly if you have to. I do not short these markets, and if I was going to, it would not be at these major support areas.
In summary, my recent reports have been brief because I have been in the Bradenton area of Florida presenting to groups. I have met some amazing people here and had the opportunity to network with very impressive talent. As far as this trade goes, I have been managing inventory for months now and continue to selectively add to it. Keep in mind position trading and swing trading are two separate strategies which contain different stops and targets. For more details on the active swing trade and decisions for my position trade, you can go to S.C. which is still being populated with information. As long as this market maintains the current supports, I believe it is reasonable to anticipate higher prices over the next week at least.
Questions and comments welcome.
Also looking at some alts that will probably get even worse oversold