Here is an updated chart that I posted on Feb 18th. In the chart I highlighted areas to watch for potential reversals in the event of a sell off. As price sold off it found brief support at my first green zone only to drop significantly overnight and was followed up by some panic selling in the am which undercut my second green zone sharply. We then got reassurance from Powel that the money printer still works and the dip buyers stepped in and the shorts covered driving price back up to where it started. The question now is... where does price go from here. If price stays below the 618 (red box) I will remain bearish as price can easily reject from here and retest the recent low. If price can reclaim the 618 (red box) and move higher the probabilities favour a continuation of the bullish trend. For the time being I have stopped trading options to the long side. Buying straight long calls or long puts in a choppy market like this is a guaranteed account killer IMO . You will end up paying a high price for premium and may not get the follow through needed to push option prices up. It is much easier in these conditions to simply trade equity which is what I will do if the opportunity arises. Also, sometimes it is best just to sit on your hands and wait. Now is likely one of those times until we get some clear direction.
Comment:
Cleared the red zone with ease so 4000 and new ATHs are back in play. Look for retest of the red zone and move back up. Price need to hold the 3900 to keep the momentum going.
Comment:
Price currently not holding the critical 3900 level. Below this level expect sideways to down price action or chop.
