Think we can push from this demand level and try to go and close the gap. Open tomorrow will be a big indicator for me as it looks like we are setting up the 1 - 2 wave movement out. These sell offs can produce good rallies by picking up buyers in good demand. However, this is the second time we have visited this level.
Game Plan: tomorrow open is important. If we bid up at open and make higher low, I will trade based on this count. IF we break by making a lower low, I’ll watch and see if we move down towards 55.93. So, higher low I think we push for gap fill. Below 55.93, I think 53.80 comes quickly!
As a side note, I do have a longer term count potentially down to 45, then eventually 38. So, where we are in this structure is important. If it wants to avoid those levels, some buyers better start stepping up otherwise it can fade.
Your chart technicals are fantastic. Can you please come up with tomorrows earnings entry/exit point?
PT_Marche
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@cryptopassion to be completely honest, I don’t include or even think about earnings at all when I make a trade plan for an underlying. I guess if I would, I would just view an earnings as a possible event to help price action make a faster decision to either go to a supply or demand zone if the stock is in a chop zone. I used to trade earnings but found out a lot of the time when you try to make a trade, the stock happens to be right in a chop zone before announcement. I think the best way to trade earnings is AFTER earnings. EXAMPLE: stock is between supply/demand. Earnings come out and they CRUSH it... stock rockets up 10% but then, “oddly”, the stock is down 20% despite an “amazing” report. Why? Because let’s say that 10% rocket boost landed the stock smack dab in a MAJOR supply zone. All those sellers then get the opportunity to just offload everything, helping/causing price to just fall right off a cliff. Additionally, all those people who played earnings and won, a good majority of them are going to sell to lock in profits, just creating more downward pressure.
Sorry this was a little long reply. I’ll make a post explaining it too but go ahead and shoot me a direct message if you want to chat about it!