So it looks like the 200 week MA has provided support of the price action at this time. I managed to time this pretty well and have been Long since around 2360. I have sold half of my position for now because the daily candlestick (I will link the chart below) finished on a bearish spinning top which could signal a reversal back down. However, the weekly candle shows promise with what almost looks like a bullish piercing reversal.
Ultimately I am still looking for a reversal in the market. But for now I am going to trade carefully before adding to a longer term position. I am fairly confident that we can reach 2600 before coming into major resistance, which is previous support levels coupled with 100 week MA. So I will wait to sell the other half of my position at 2580 before reaching this point. I expect to get rejected, and from there I can evaluate when and if I choose to enter another long position.
My approach will now be to anticipate a higher low to start forming on the weekly time frame. If that fails then I'm hoping the trend line can support us enough to rebound the price. That being said, I would not be surprised to see another leg down below the trend line before reversing. If I can see clear divergence on the RSI at this point then I would also consider entering a Long position.
Ultimately I am still looking for a reversal in the market. But for now I am going to trade carefully before adding to a longer term position. I am fairly confident that we can reach 2600 before coming into major resistance, which is previous support levels coupled with 100 week MA. So I will wait to sell the other half of my position at 2580 before reaching this point. I expect to get rejected, and from there I can evaluate when and if I choose to enter another long position.
My approach will now be to anticipate a higher low to start forming on the weekly time frame. If that fails then I'm hoping the trend line can support us enough to rebound the price. That being said, I would not be surprised to see another leg down below the trend line before reversing. If I can see clear divergence on the RSI at this point then I would also consider entering a Long position.