Over the last couple of days I have been calling for a retest of $7,950. If bearish that would be a good spot to open a short. If bullish, $7,350 - $7,500 is still providing a very attractive risk:reward on a long. I am remaining on the sidelines until the triangle that started on 2/6 breaks one way or the other.
We are fast approaching the 66% benchmark, which is where the break is expected to occur. That should be happening in the next 1-3 days. In order to breakout to the upside we would need to be trading above $9,000 - which requires getting through a lot of resistance in a short amount of time.
If longing from the $7,500 area then I would take full profits at $7,950 and wait for further development from there. The bears have a lot of momentum on their side and there will be horizontal and trend resistance waiting just under $8,000.
That will also be the 3rd touch of the down trend that started on 5-6 (red dotted). The 3rd touch of a trendline is when traders are most confident.
The daily Stochastic is screaming oversold and indicates that we should be in for a 3-5+ day rally. If that is the case then we could be right on schedule to break the triangle to the upside. In the meantime I will be relaxing with a massage this afternoon and enjoying my time away from the charts.
Happy trading and go bulls!
A like/comment/follow a day keeps the bears completely away!
We are fast approaching the 66% benchmark, which is where the break is expected to occur. That should be happening in the next 1-3 days. In order to breakout to the upside we would need to be trading above $9,000 - which requires getting through a lot of resistance in a short amount of time.
If longing from the $7,500 area then I would take full profits at $7,950 and wait for further development from there. The bears have a lot of momentum on their side and there will be horizontal and trend resistance waiting just under $8,000.
That will also be the 3rd touch of the down trend that started on 5-6 (red dotted). The 3rd touch of a trendline is when traders are most confident.
The daily Stochastic is screaming oversold and indicates that we should be in for a 3-5+ day rally. If that is the case then we could be right on schedule to break the triangle to the upside. In the meantime I will be relaxing with a massage this afternoon and enjoying my time away from the charts.
Happy trading and go bulls!
A like/comment/follow a day keeps the bears completely away!
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