The markets have given us some clear direction over the last few months, albeit we are at quite high levels and I would expect a pullback at some point.
There are 2 important clues here that are clearly visible on the chart.
The first is a continuous strong move up as illustrated in the channel. We can clearly see the supply and demand zones flipping once price is able to test important support and resistance.
The second is a pullback coming into the lower end of the channel, as well as the s/r flip from the previous range.
We are clearly still in an overall bull market, so it would be a terrible place to short below the lows, for the time being.
Until additional data points to lower prices, my bias will have to remain long. A break of market structure would change my bias and I will update my bias from there.
There are 2 important clues here that are clearly visible on the chart.
The first is a continuous strong move up as illustrated in the channel. We can clearly see the supply and demand zones flipping once price is able to test important support and resistance.
The second is a pullback coming into the lower end of the channel, as well as the s/r flip from the previous range.
We are clearly still in an overall bull market, so it would be a terrible place to short below the lows, for the time being.
Until additional data points to lower prices, my bias will have to remain long. A break of market structure would change my bias and I will update my bias from there.
Trade active:
order flled at $60
Comment:
Big move down, Ive decided to keep the trade running and average down into this one at $58 for market open.
Comment:
I believe this may be a fake out. Stop below $58 would start looking quite bearish.
Trade closed manually:
After watching the market and overall structure, I decided to close this position and wait for more clarity.