NASDAQ:CVET
I think the market will grow tomorrow.
That's why there's another paper for tomorrow in long.
What's on the chart:
1. Paper with a strong accumulation of long player volumes.
2. On June 5, the short player stopped growing. From that moment in order to be able to break through the resistance level 19.27, the long player was gaining volumes.
3. On June 24 and 25 retests of the level were made, but the paper did not go into the short zone. We can see that the paper is supported by purchases.
4. On July 7, another retest - made a false breakout by one bar: only 1 cent higher - and again the paper did not go down.
5. At the last trading session the long player broke through the resistance level. Please note that there are no volumes on the breakout bar, i.e. as a result, we will have two options for trading on Monday under different scenarios.
1. Safe scenario for the long:
Waiting for fixing in the long zone. To do this, the D1 bar on Monday will have to open and close above 19.27.
On Tuesday, we will be able to look for an entry point for buying.
The growth potential is quite large up to 22.4, as the accumulation of volumes was very significant: within 25 days.
But again, I am confused by the fact that there were no increased volumes at the breakout bar. I will keep a close eye on the nature of trading on Monday.
2. Safe scenario for the short:
Trading in short when forming a "false breakout by two bars" model.
For this, the daily bar on Monday must open above 19.27, but close below this level.
On Tuesday, you can look for the entry point to short.
However, I am not leaning towards the short in this paper, because 4 trading sessions in a row the instrument grew and formed a pressure under the level.
If you trade in short counter trend, use a very short Risk to place a small SL.
In this case, the counter-trade potential is sufficient for RR 3\1.
Again, I'm 90% inclined to long, however, I'll look at the behavior of the instrument, the volume of sellers and buyers, and the behavior of SPY.
I think the market will grow tomorrow.
That's why there's another paper for tomorrow in long.
What's on the chart:
1. Paper with a strong accumulation of long player volumes.
2. On June 5, the short player stopped growing. From that moment in order to be able to break through the resistance level 19.27, the long player was gaining volumes.
3. On June 24 and 25 retests of the level were made, but the paper did not go into the short zone. We can see that the paper is supported by purchases.
4. On July 7, another retest - made a false breakout by one bar: only 1 cent higher - and again the paper did not go down.
5. At the last trading session the long player broke through the resistance level. Please note that there are no volumes on the breakout bar, i.e. as a result, we will have two options for trading on Monday under different scenarios.
1. Safe scenario for the long:
Waiting for fixing in the long zone. To do this, the D1 bar on Monday will have to open and close above 19.27.
On Tuesday, we will be able to look for an entry point for buying.
The growth potential is quite large up to 22.4, as the accumulation of volumes was very significant: within 25 days.
But again, I am confused by the fact that there were no increased volumes at the breakout bar. I will keep a close eye on the nature of trading on Monday.
2. Safe scenario for the short:
Trading in short when forming a "false breakout by two bars" model.
For this, the daily bar on Monday must open above 19.27, but close below this level.
On Tuesday, you can look for the entry point to short.
However, I am not leaning towards the short in this paper, because 4 trading sessions in a row the instrument grew and formed a pressure under the level.
If you trade in short counter trend, use a very short Risk to place a small SL.
In this case, the counter-trade potential is sufficient for RR 3\1.
Again, I'm 90% inclined to long, however, I'll look at the behavior of the instrument, the volume of sellers and buyers, and the behavior of SPY.
Trade closed: target reached