UOL is fast approaching a big resistance level as highlighted by the two blue rectangle boxes; one being a strong supply zone while the other is the 200EMA that will act as resistance.
Question is should we short?
My personal preference will NOT be to take a short trade, but to wait to long instead.
Reason:
1) The prior supply zone is a weak high and have many failed auctions.
2) The recent uptrend move is strong; Smart Money may had rotated to a long position instead
With regards to the first reasoning, the big players will also know that its an area many are looking to short. But with so much failed auctions at the supply zone, they will know it’s a good area of liquidity to hunt – they will hunt for your shorts stop loss position.
The red arrows are our predictions on how this counter will move – first spike to take in the shorts SL, before a minor correction and then continue its uptrend upwards.
DO NOTE CHARTS ON TRADINGVIEW ARENT ADJUSTED FOR DIVIDENDS AND MIGHT APPEAR DIFFERENTLY FROM OTHER CHART PROVIDERS SUCH AS CHARTNEXUS
Best Regards,
NourCapital - Tracking Smart Money Flow
Disclaimer:
The material (whether or not it states any opinions) is for educational purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by Nour Capital or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Question is should we short?
My personal preference will NOT be to take a short trade, but to wait to long instead.
Reason:
1) The prior supply zone is a weak high and have many failed auctions.
2) The recent uptrend move is strong; Smart Money may had rotated to a long position instead
With regards to the first reasoning, the big players will also know that its an area many are looking to short. But with so much failed auctions at the supply zone, they will know it’s a good area of liquidity to hunt – they will hunt for your shorts stop loss position.
The red arrows are our predictions on how this counter will move – first spike to take in the shorts SL, before a minor correction and then continue its uptrend upwards.
DO NOTE CHARTS ON TRADINGVIEW ARENT ADJUSTED FOR DIVIDENDS AND MIGHT APPEAR DIFFERENTLY FROM OTHER CHART PROVIDERS SUCH AS CHARTNEXUS
Best Regards,
NourCapital - Tracking Smart Money Flow
Disclaimer:
The material (whether or not it states any opinions) is for educational purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by Nour Capital or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.