Going to keep this one short and simple. We broke our ascending trendline and further downside is expected. Most of the time, with every break comes a pullback. As you can see on the chart, the arrows showing two possible re-entry levels for the short positions:
1) We pullback to the minor resistance area of 6400-6500 before dumping again.
2) We pullback further into the ascending trendline to retest it and bounce off of it (somewhere around 6900).
If we fail to see any pullbacks then you can try enter the next dump during consolidation periods within smaller time frames (15min/5min). Those consolidation periods usually form into wedge patterns before continuing to dump on higher time frames so you can watch out for that as well. I will publish an idea if we manage to see anything like that form up in the future but Im always skeptical about analysing charts on smaller time frames.
Targets for our shorts can be seen on the chart. Long term I still think 3200 is possible but we need to see more volatility within the markets for that to happen. Should we see a break above 6900/7000 then my bias will change completely.
This is NOT a financial advice, trade at your own risk!
1) We pullback to the minor resistance area of 6400-6500 before dumping again.
2) We pullback further into the ascending trendline to retest it and bounce off of it (somewhere around 6900).
If we fail to see any pullbacks then you can try enter the next dump during consolidation periods within smaller time frames (15min/5min). Those consolidation periods usually form into wedge patterns before continuing to dump on higher time frames so you can watch out for that as well. I will publish an idea if we manage to see anything like that form up in the future but Im always skeptical about analysing charts on smaller time frames.
Targets for our shorts can be seen on the chart. Long term I still think 3200 is possible but we need to see more volatility within the markets for that to happen. Should we see a break above 6900/7000 then my bias will change completely.
This is NOT a financial advice, trade at your own risk!
Comment:
Well, it may seem like the pullback is over. Reached the 50% level of Fib and bounced off of it. Let's see how the candle closes to confirm this
Comment:
Wow! Big rejection from 6030. Idea still remains intact for now