Looking at the chart, price is going to go one of 2 ways. (Obviously!!)
We can see that there is a nice little resistance zone around the 38.2% Fibonacci level, if price gets rejected, again, we can expect a a move down, but by how much? Well I don't actually know as the markets have been moving mad over the last few weeks!
If the price manages to break through the resistance zone, then we could possibly reach a dizzy height, around the 78.6% Fibonacci level.
As we always do at Elevation, If we get a long trade confirmed, we will set take profits at each of the Fibonacci levels, if we get a short on the other hand, I think the sensible option would be a mechanical stop loss, see how the trade plays out and possibly change the stop loss to a trailing stop.
Trade active
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With a strong bounce from the resistance zone, I have entered a short position with a mechanical stop loss, I'm looking to ride this trade until my MACD gives me a exit indication.