The price has bounced well from the daily support DS1 which was our target for the last short trade. We did not take any long though it was a good opportunity for going long. However, now price is coming close to 4h resistance 4HR1 area. I think this zone shall resist the price and push it down again towards the daily support zone. Since the price has strength moving upwards, I will keep the size small for this short trade.
Comment:
The price has been rejected from the 4h resistance 4HR1 and got pushed back down. Its time to book some profit on 4% drop. Its always wise to book some profit specially when the strength of the price is in the opposite direction.
Trade closed: target reached:
The price has reached our target. We booked some profit on first drop and it was a good decision as the price thereafter again tested the 4h resistance zone 4HR1 allowing to add to the position again. The price again got rejected from the 4h resistance 4HR1 and started moving down. It has now hit the daily support zone DS1 which is also our target for the long trade. It seems the price is gong further down, however, the support can be used to take a long trade once the price shows the sign of bounce from here. Lets watch and look for such setup. As mentioned before, I am still inclined that the price might be heading for weekly support WS1 which is around 0.025 and not visible on this chart. But thats quite far and we can do several trades in between even if the price does not head there.
