Strategy: Buy breakout of wave (1), then ride wave (3). Once target has been reached, a trailing stop loss may provide greater returns.
Long position details:
- Time-frame - 10 hours to a couple days
- Risk/reward ratio - around 2.
- Entry - slightly above wave (1)
- Stop loss - slightly below 100
- Target 1 - 100% Fib Extension (slightly below resistance line)
- Target 2 - 168% Fib Extension or trailing stop loss after Target 1
Other possibility where downtrend continues below the wave (1) low, but will have to break the long-term uptrend again in order to do so.
This post is an idea and not financial advice. Remember to trade safe!
These are two possibilities to consider.
Option 1 - Still on wave 3 - bullish:
I made this update just before option 2.
Option 2 - Wave (3) complete, correction wave (4) in progress - bearish:
I have moved the low of wave (1) up slightly, which changes the fib extension target for wave 3 to be met. It looks like we're now on the correction wave, wave (4). A bounce off the 76 EMA is a possibility, before moving up on the next leg up, wave (5). Please not that in order to continue the uptrend, we must remain above wave (1) territory. Failing to do so will invalidate the impulse wave and may downtrend instead.