Daily chart remains bullish, but we have broken down from a low-volume rising wedge and consolidated sideways for a few weeks now...2950-3000 has seen heavy selling on every test. Each time we get rejected there, we return to support around 2775-2815. We should expect some buyers around the top of the ichimoku cloud on the daily, but if we fall inside of the cloud this week, the orange Senkou Span/ lagging line will be below price. It will be harder to overcome resistance than it was previously. Sell pressure should increase and we could see at least a test of the lower bounds of the cloud, if not 2500 where the lagging line would tag the white Kinjun-sen (26 period). considering how quickly we fell in March and bounced since then, we can't rule out that we are now finishing a corrective wave B, meaning a lower low than March 23 is still very possible. However, monthly and weekly timeframes remain bullish for now...
This trade is aggressive for a daily chart short, as the only signs that bears are setting up for a fight is on the wave trend oscillator, but with the potential reward being high and the risk parameters very clear (a close over 3000 or so should lead to another leg up), entering the trade aggressively makes sense. Stop can be trailed to break even if price closes a day within the cloud. Sell pressure should increase once we cross below 2800. It's reasonable to take some profit around 2650-2730 if we consolidate and break above a daily high. I'd re-evaluate and consider re-entry in either direction after that point. If you've held long, this would be a very reasonable spot to take some profits.
This trade is aggressive for a daily chart short, as the only signs that bears are setting up for a fight is on the wave trend oscillator, but with the potential reward being high and the risk parameters very clear (a close over 3000 or so should lead to another leg up), entering the trade aggressively makes sense. Stop can be trailed to break even if price closes a day within the cloud. Sell pressure should increase once we cross below 2800. It's reasonable to take some profit around 2650-2730 if we consolidate and break above a daily high. I'd re-evaluate and consider re-entry in either direction after that point. If you've held long, this would be a very reasonable spot to take some profits.