XEL is retracing back after a stong bull run, and it's looking like it's coming to a great time to re-enter. There are 2 possible areas that if the price were to start a new elliot wave cycle, it would bounce from. We're currently in a retracement phase and it's looking to come to an end around the 0.618 Fib level. Those 2 areas are:
1. A previous long term resistance line that has now turned support. This line is just above the 0.618 Fib level and it has been tested in the last couple of 4H candles.
2. The labelled support area below. This area has seen support and resistance a few times and would make sense for the price to bounce from here. If price were to bounce from this area, I would look for it to break the line mentioned in area 1 on the 1H chart as a confirmation of trend reversal
Stoch is saying that XEL is quite oversold at the moment which is giving me confidence that the price will bounce from one of these areas. Will only enter once price has confirmed a bounce from one of these ares
1. A previous long term resistance line that has now turned support. This line is just above the 0.618 Fib level and it has been tested in the last couple of 4H candles.
2. The labelled support area below. This area has seen support and resistance a few times and would make sense for the price to bounce from here. If price were to bounce from this area, I would look for it to break the line mentioned in area 1 on the 1H chart as a confirmation of trend reversal
Stoch is saying that XEL is quite oversold at the moment which is giving me confidence that the price will bounce from one of these areas. Will only enter once price has confirmed a bounce from one of these ares
Comment:
After the wick on the 4H candle hit the first support line, price on the 1H chart has gone up slowly. Will watch over the next few hours and judge if it's a good entry or not
Comment:
Has continued up but looking like it will come back down. May retest support but feeling like it will just retrace a little before continuing up
Comment:
Price hit and bounced from the support area as expected. Has now confirmed that with a close above the support line so it looks like a good buy in here. Would've liked to enter at a cheaper price but a mans gotta sleep
Comment:
Wait for this 4H candle to confirm above the support area. Looks like 1H candle may go down a little and want more secure confirmation
Trade active:
Bought at 0.000148
Comment:
Price seems to be bouncing nicely from the top of the support zone. A lot more buyers than sellers so expect a take off soon