USD/CAD: LONG! Armpit on Sale!

Idea: I think price goes up more.

Opinion: I think we're hanging out in the right armpit of a Loonie Head & Shoulders formation. It's easier to see on a weekly chart.

Also, we have a daily support zone marked at 1.3381.

The Situation: Executed a long position over 2 hours ago at 1.3385 with stops at 1.3375, which were immediately challenged by price action with an immediate new low at 1.3376; A painful entry. Stops were retreated to 1.3370, price checked out 1.3374, then assaulted 1.3373. We survived. We're in.

If I'm right about this H&S formation armpit play, this armpit bottom should open a rally to 1.3667ish - The top of the right shoulder.

Risk: Trading against the trend is ill advised, but I've been watching this thing form up for weeks. Even got savagely ranged for a series of losses (5 small paper cuts) trying to short the play from 1.36ish.

Entry: Decided to post idea after price spared our stop losses and pushed out of support to trade above 1.3380 with a tenuous buy signal from my sidelined day trading setup (I don't day trade and scoff at scalping).

Techs: No indicator support. It's a formation play. A pure price + head & shoulders & support zone bullish preemptive strike idea. Wish us luck!

Commentary: A low risk situation with a high probability of success, but I don't like it. It's at odds with my trading set up. Don't like buying or calling bottoms. However, buying the right armpit from a seemingly confluent support zone while risking a friendly 15 pips for obscene gains seems like the right thing to do. LONG!

Expected Trade Duration: Hours to Days. Might run into next week if it behaves.

Run Boobie Run!!!!
Theme music: www.youtube.com/watch?v=m0YJrlKD...

Target: 1.3478ish, 1.3520ish, 1.3570ish, 1.3667ish.

Major Resistance: 1.3520ish, 1.3667ish
Daily Resistance: 1.3570ish.
Intraday Resistance: 1.3478ish.

Entry: 1.3385
Stops: 1.3370
Daily Support: 1.3381ish
Major Support: 1.3319ish
Target: Resistance Zones.

Comment:

Appears that trade idea is validated. Need a strong push over 1.34 to make sexy time.
Current Price: 1.3398ish.

Trade active:

The thing is getting technical support.
No adjustment to spot at this time.
Stop loss to break even coming soon.

Recommendation: Remain stiff.
Entry: 1.3385
Stops: 1.3370

Current Price: 1.3403

Comment:

Didn't work out.
Flatski @ 1.3369
-16.

Loss.
P&L: -16

Trade closed: stop reached:

May try this idea again if a good long develops at this level.
Idea is dead for now.

Comment:

It appears that we'll get another chance to get long. Price is putting in a bottom with a tenuous buy signal developing at our support zone of 1.3380ish.

I might try another long position in the next 2-4 hours. If I get in, I'll post an update.