The Perma-Bears Should Have Listened! Target 9300-9500
As per my previous analysis’ we are moving pretty much as expected. I expect us to range over the next week in our attempt to hit our target of 7700; though there is a small chance that we have already hit our limit at around 7485.
Once we confirm the top (somewhere between 7485-7700) we will begin our descent back to 6800 to confirm it as support (again this WILL happen as it was such a key level). This would represent an excellent and low risk long entry point as per a buying last resistance strategy. There is also the more riskier option of shorting on the way back from 7485-7700 to 6800. So, depending on your appetite for risk, play as you seem fit!
Again, as per my previous analysis’ we are now forming the larger ascending triangle. I have amended the target zone to now be 9300-9500 which considers that the top resistance of our pattern is somewhere between 7485-7700. Although some people were calling me crazy, this is playing out exactly as I expected. Once we hit our 9300-9500 target and retrace we will have formed the larger C&H pattern which will take us to 13,500.
In terms of my own personal trading, I am a firm believer in my patterns. I am laddering in shorts from now at 10X leverage. This gives plenty of room for the price to still go up to 7700, however if it starts to retrace for our 6800 retest at least I am in a position. For every 50 or so dollars we go higher I will increase my short position. I will cash out around 6900 and then prepare for my long entry on the way up to 9300-9500 at which point I will short again (rinse repeat).
Once we confirm the top (somewhere between 7485-7700) we will begin our descent back to 6800 to confirm it as support (again this WILL happen as it was such a key level). This would represent an excellent and low risk long entry point as per a buying last resistance strategy. There is also the more riskier option of shorting on the way back from 7485-7700 to 6800. So, depending on your appetite for risk, play as you seem fit!
Again, as per my previous analysis’ we are now forming the larger ascending triangle. I have amended the target zone to now be 9300-9500 which considers that the top resistance of our pattern is somewhere between 7485-7700. Although some people were calling me crazy, this is playing out exactly as I expected. Once we hit our 9300-9500 target and retrace we will have formed the larger C&H pattern which will take us to 13,500.
In terms of my own personal trading, I am a firm believer in my patterns. I am laddering in shorts from now at 10X leverage. This gives plenty of room for the price to still go up to 7700, however if it starts to retrace for our 6800 retest at least I am in a position. For every 50 or so dollars we go higher I will increase my short position. I will cash out around 6900 and then prepare for my long entry on the way up to 9300-9500 at which point I will short again (rinse repeat).
Comment:
Still ranging as expected... It is highly likely we will follow a similar pattern to the highlighted blue box. I have added the purple arrows to show potential price acton; however please don't take this as gospel! This is just a really rough idea to show how the price will fluctuate over the coming week before we go down to retest 6800.
Comment:
Still ranging as expected. We have now also wicked up towards 7680 which is great. I expect we will wick up at least another 1 or 2 times over the coming week before beginning our descent down. In the meantime we will continue to range in the green zone. From my personal trading perspective, I am almost in my final short position. I mentioned initially I was going to ladder in shorts up to 7700; and now thanks to the wick I have had my orders at 7600, 7650 & 7680 filled. I still have orders at 7700 which are yet to be filled. I will wait another couple days before updating as there is not really a lot to say in the interim except - 'Still ranging as expected'. Once we begin our descent it will be more exciting, though this won't be a sudden drop to the bottom (there will be an initially 200-300 drop) and will also involve a period of ranging.
Comment:
Update: I cashed out my short position at 7230 as it was too tempting to take about 75% profit knowing we are still going to go up and test 7680-7700 again. I have now set new short orders from 7650-7700 as the overall plan has not changed. This move down just gives us the room to advance back up to 7680-7700 again where we will ultimately be rejected again. It may take 2-3 days to get there again (possibly more) but it will happen. This will be our short entry for the descent back down to 6800. For those who are more risk adverse, wait for the long entry point back at 6800 and ride the move up to 9500.
Comment:
One final update! Shorts are currently increasing. However anyone who enters at the current level with higher than 17X leverage WILL be liquidated when we move back up to 7680-7700. Something to take note of.
Likewise, any longs entered at the current price with 17x leverage or greater will be liquidated when we head back down to 6800. Longs already entered into a position higher than 7270 will be liquidated on the trip back down to 6800 with even less leverage.
Likewise, any longs entered at the current price with 17x leverage or greater will be liquidated when we head back down to 6800. Longs already entered into a position higher than 7270 will be liquidated on the trip back down to 6800 with even less leverage.
