a) The main structure of the current movement is the ascending channel, which has been broken, and currently, we can see the price on the edge of it
b) The second most relevant structure is the corrective pattern we can see on the edge of the ascending channel
c) If we have a breakout of the corrective structure (on the green line), We will consider that the view is active
d) If the price goes as expected, the first Fibo level is a risk-free zone, meaning that we would move our stop loss to break-even
e) Our Final target is 167, where we expect a 100 days movement
f) Also, it's essential to pay attention to the invalidation level. If the price reaches it, we will consider that our view is no longer valid, and maybe a bearish movement could start.
Breaking below your invalidation area, you will be short? or just speculating? I would feel confident going long at the 127 price level if it did end up heading there. Retesting the previous resistance/New support.
ThinkingAntsOk
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@scott239florida, We wouldn't take a short setup directly without waiting for a new corrective structure that validates the short setup's idea. However, we can use that level, either to set our stop loss or as a level that tells us, "hey, be open to short opportunities because a support zone on a key area (higher level of the ascending channel) was broken.
Breaking below your invalidation area, you will be short? or just speculating? I would feel confident going long at the 127 price level if it did end up heading there. Retesting the previous resistance/New support.