It is hard to say how the market will respond to Korea in the US once they wake up. They could screw this up for all of us, but the news out of Korea generated a response. While fundamentals can't be ignored, I like to see how they fit in with our technical analysis in determining whether we should continue with the trade or not.
To help preserve capital a good stop loss would be at the 0.236 fib extension. In none of the previous retracements has the 0.236 been touched, so this can be a good price to start some trailing stop losses.
To reach previous support we would need to drop to approximately $900. Once we hit the support level today, we quickly shot back up to $1,200 despite having attributable reason for the correction. That is a strong signal of strong support.
We have not touched the top of our Ichimoku Cloud yet - another strong sign.
We have always touched our support after an ATH, another strong sign.
There is only fundamental analysis based on Korea news, and the diverging RSI to indicate possible market reversal.
It is difficult to know how the market will respond, but this is why we set a trading plan and evaluate it constantly. Keep your eyes open for the market trending away from your plan, but for now everything appears normal and healthy. However, it wouldn't be surprising to completely retrace down on this news, so keep your stop losses accordingly to protect capital.
To help preserve capital a good stop loss would be at the 0.236 fib extension. In none of the previous retracements has the 0.236 been touched, so this can be a good price to start some trailing stop losses.
To reach previous support we would need to drop to approximately $900. Once we hit the support level today, we quickly shot back up to $1,200 despite having attributable reason for the correction. That is a strong signal of strong support.
We have not touched the top of our Ichimoku Cloud yet - another strong sign.
We have always touched our support after an ATH, another strong sign.
There is only fundamental analysis based on Korea news, and the diverging RSI to indicate possible market reversal.
It is difficult to know how the market will respond, but this is why we set a trading plan and evaluate it constantly. Keep your eyes open for the market trending away from your plan, but for now everything appears normal and healthy. However, it wouldn't be surprising to completely retrace down on this news, so keep your stop losses accordingly to protect capital.