As this trade progresses, shorts will be forced to cover, creating a potential for a parabolic move north.
Factors leading to the decision:
- Long-term downward trendline broken
- Decent showed up at the low, noticeable to traders looking for a sign of reversal
- A recent small retracement created a higher-low which is an ideal place to put a tight stop for the trade
- 20 was recently crossed and held, luring in MA traders
As always, use a tight-stop and if it rips down, let it run and trail stops behind.