Just "KISS"ing.
Keeping it simple stu***
At times its better to keep your chart clean and simple.
It allows you to eliminate the noise & identify the structure that has developed.
At the moment we are at the top of the structure aka resistance.
Since overall structure is upward, I choose not to short or long puts. However, active traders with a larger risk appetite may do so since its not illogical to short resistance.
Some possible plays below:
a) conservative play: take profits (if you're already in) and buy the dip at $46 (with a target at top of structure at $52)
b) medium risk: short this $52 level and cover at $46 (structure support)
c) High risk/high reward: Long $46 strike puts (ill leave expiry dates up to you)
Everyone has their own risk appetite, play what makes sense to you, cheers!
Keeping it simple stu***
At times its better to keep your chart clean and simple.
It allows you to eliminate the noise & identify the structure that has developed.
At the moment we are at the top of the structure aka resistance.
Since overall structure is upward, I choose not to short or long puts. However, active traders with a larger risk appetite may do so since its not illogical to short resistance.
Some possible plays below:
a) conservative play: take profits (if you're already in) and buy the dip at $46 (with a target at top of structure at $52)
b) medium risk: short this $52 level and cover at $46 (structure support)
c) High risk/high reward: Long $46 strike puts (ill leave expiry dates up to you)
Everyone has their own risk appetite, play what makes sense to you, cheers!
Order cancelled:
"Since overall structure is upward, I choose not to short or long puts. However, active traders with a larger risk appetite may do so since its not illogical to short resistance."
"Buyers fully in control breaking out price above previous $52 resistance.
Note how out mentioned, since overall structure is upward, i choose not to short or buy puts. This is a prime example for the rule, "never trade against trend."
"Buyers fully in control breaking out price above previous $52 resistance.
Note how out mentioned, since overall structure is upward, i choose not to short or buy puts. This is a prime example for the rule, "never trade against trend."
Note how out mentioned, since overall structure is upward, i choose not to short or buy puts. This is a prime example for the rule, "never trade against trend."
Congrats, to those who held through this resistance as well as breakout buyers.
Those looking for (re)entry: use the structure for long opportunities, in this case would be a retest of the $52 breakout. Set alerts for $52 and seek lower timeframe bullish patterns at $52 support.
I will now consider this "short analysis" invalidated.
For those following, i will continue to update and will provide an alert if I see bullish buying once we retest $52.