So, I went short earlier while the price was in the pattern but was not at my computer to post or update the trade. Notice how the price came back and re-tested the pattern to confirm that former support was now resistance, as I suggested it might in my last post. That was also another chance for you to get short. However, now is a great low-risk, high-potential-return long. The price seems to have found support at the 50% retracement and 8k as a whole number. At this point, I don't think you need to risk much more than $50 to gain at least $200, and the probability of some upside here is high, so it's low-risk to find out how high we go. On top of that, depending on how much traction we get to the upside, we could see some great long price formation on the 4h chart and maybe even the daily chart and therefore get in on the ground floor of a nice rally. In any case, I am already long.
Comment:
Also, notice how the MACD seems to be swinging around to the upside and the RSI is coming out of oversold territory. Two more factors to suggest long is a good way to go now.
Trade closed manually:
I'm out at 8010. I'm gonna go to sleep instead.