On the technical side, we see an ABCD reversal pattern coming into a key on the . This is a 4 point price structure comprised of three consecutive swings where C is lower than A and the intermediate high after B. D is a new low under the price of B. AB and CD are proportional in both price and time. A high probability trade entry would be to go long at the completion point D. It converges with an oversold , a key where price reversed before and a zone between the 500 and of the that started last April . The mixed NFP of last Friday might help it push up as well.
The stop would go under the aforementioned which has a nice confluence with the lower of an ascending . If price breaks these, the trade becomes invalid. TP1 lies just under the next key . TP2 lies just under the price level of A. See chart for details. In terms of trade management, when TP1 is hit I would take profit on half of my position and roll my stop loss to breakeven, enjoying a risk free trade towards TP2. As always consult your own trading plan and apply the rules of entry, exit and risk management you normally use and are comfortable with.
There are 750+ pips to be made and the trade has a reward – risk ratio of 7!