- Buy the 16250 - 16200 zone
- Stops Below 15973 (2014-2-20 low)
- Target1 16700
- Target2 a new high above 17148
Reasons for the trade:
- Market dipping below 200dma channel low (16303), where dip buyers should emerge
- Market retracing 50% of the 2014 range at 16242
- Market touching the Weekly S1 at 16257
- Market touching the weekly 50sma channel high at 16300
- Technicall oversold conditions, that should get at a bounce...
Let's see if this market is really weak and or if this is a "normal" dip opportunity.
If we do get a bounce from this technical setup dip opportunity, reactions at the 38.2 - 50 and 61.8 retracement levels from the high should be monitored with great care for a potential failure, as a lot of people will expect this bounce to happen.
We all know what happens in the markets when it's too obvious, and everybody believes he's right (betting the farm in the process :wink)...
Repeated failure above 16450 and 16600, should be viewed as strong negative signals to the upside.
In any cases, the trade being stopped below 15973, would have the whole dip monkey buying strategy reviewed and stopped as it could signal a bigger retracement / correction ...
And remember as Always: No Hoping - No Wishing - No Praying - No Opinions - JUST TRADING...
Rejection of 16753 on a closing basis (being the monthly pivot and the breakdown point from 2014-06-12 lowest close) , could indicate a potential resumption of the selling.
A close below the 100 dma channel low, at or below 16605 could indicate potential failure and more downside to come.
We'll keep alerted to that possibility if market struggle to clear the 16735 - 16785 zone to the upside.