Recent price action suggests a break from the past several month's downtrend (in particular, a break in the trendline
projection thatconnects points B and D in wave 4), which just so happens to occur at a critical point in the overall structure indicative of another large-scale impulse wave higher as price moves within a consistent and rather rigid parallel channel
. The confluence of these two events -- the break of the current downtrend and the resultant bounce at a significant structural trendline
-- strongly suggests a move higher. At the very least the following setup should present an outstanding R/R opportunity given the upside reward of 500+ pips for those who are willing to wait.
My current position is 80k long at an average cost of 1.1302. Will reduce position by 1/2 at TP1 before pyramiding the remaining position toward TP2.