SOXL just completed a brutal 44% correction and is now testing the rising 50 EMA for the first time since the April breakout. This is where charts either repair themselves… or completely unravel.
The move higher was nearly vertical, so some mean reversion was inevitable. The question now is whether this is a healthy reset in a powerful uptrend or the beginning of a larger trend change.
Bulls want to see the 50 EMA hold and buyers step in aggressively. Bears want to see a decisive break below it. Either way, this is one of the most important levels on the chart right now. I’m not interested in predicting what happens next—I’m interested in seeing how price reacts here.
The best trades often come from patience at inflection points.
The move higher was nearly vertical, so some mean reversion was inevitable. The question now is whether this is a healthy reset in a powerful uptrend or the beginning of a larger trend change.
Bulls want to see the 50 EMA hold and buyers step in aggressively. Bears want to see a decisive break below it. Either way, this is one of the most important levels on the chart right now. I’m not interested in predicting what happens next—I’m interested in seeing how price reacts here.
The best trades often come from patience at inflection points.
Note
Caught the bottom Friday to Monday hold. Tried again today $166 fill.Trade active
$166 fill. Pulled half at $183.Note
Just holding 1/4 now.Trade closed: target reached
Okay $166 to $190. I'll take that playing with fire.
TraderSWRLS
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
TraderSWRLS
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.