The market has been trending higher making it's way towards the 162.50 resistance area. Price is currently pulling back towards support. The support zone is an area of confluence comprised of: the previously broken swing high within the uptrend which is now likely to act as support, and a cluster of Fibonacci retracements measured from the two most recent bullish price legs.
If the bulls are able to hold the market above the previous swing low within the uptrend around 157.00, the market is likely to continue trending higher into the 162.50 resistance area. This provides bullish trend continuation traders an opportunity to position long at support with stops behind the the invalidation point looking for a move up to the 162.50 resistance area. If entering at the front of the support zone there is a 1.5:1 reward to risk. For better reward to risk a trader can wait and enter deeper within the support zone closer to the invalidation point.
Aggressive traders may choose to enter on a limit as price enters the support zone, while more conservative traders can monitor price as it enters the zone for their particular entry signals. Update status