This trade idea is for demonstration and educational purposes only. We see that price tested the $15 levels and above very recently this year; it has potential to reach these prices again, especially given the economic uncertainties in South Africa. As you can see, price retraced from the most recent bull run, it bounced off the 50% fib level (see yellow oval highlighted area) with an impulsive move. The two yellow ovals represent key levels in the market. The impulsive move leads me to believe that there are enough buyers in the market to push price back to at least $15.2 - $15.7 area as a first TP, with potential to reach 16.0 plus price. The areas highlighted in yellow are key areas for which we should watch price respond. As this is a swing trade idea, my stop loss was placed beneath the last swing low point. Again, I am a student of the markets, and the rand is very volitile. Please ensure trade at your own risk and always use proper risk management when trading.
Comment:
Please note, this is not a signal. This is analysis. My suggestion is to watch. The market could go either way. This pair is volatile.
Trade active:
Engulfing candle indicative of bull run; watch for pullback and continuation as confirmation.