Took the long at 7am for a nice 300 point move. I quickly looked at the chart on my phone at around noon and noticed a shooting start forming on the 1-hour candle on the upper bound of the channel. I didn't take the short but it would have been a nice little scalp. I had mentioned on my last post that I didn't think the market was overbought yet, and we could see a higher push/move up. I stand by this again because end of day we are starting to see some consolidation around the 13150 level, right around the midpoint of the channel as well as holding the 50 sma. Not opening any positions from this price level as it's too risky but we'll see what happens tomorrow. There really is only two things that could happen that could make me get interested in a trade.
1. We consolidate in this area, and move higher by morning, consolidate again around the upper bound. In this case, looking for a potential long if price is consolidating from above.
2. A continuation of the sideways movement - not opening any positions
3. A push lower and consolidate around the lower bound of the channel - looking for shorts for a break lower- maybe a long for a rejection depending on what price actions tell us.
1. We consolidate in this area, and move higher by morning, consolidate again around the upper bound. In this case, looking for a potential long if price is consolidating from above.
2. A continuation of the sideways movement - not opening any positions
3. A push lower and consolidate around the lower bound of the channel - looking for shorts for a break lower- maybe a long for a rejection depending on what price actions tell us.
