The price hit the daily support DS1 on this drop and bounced strongly from there. However, this bounce was resisted by 4h resistance 4HR1 and the price reversed from there. The price is trading currently between 4h support 4HS1 and 4h resistance 4HR1. A long is favorable from 4h support 4HS1. However, there is a hourly support HS1 sitting in between which may also provide the bounce for a long trade. Ideal would be to allocate some size at hourly support HS1and major portion of the position at 4h support 4HS1. The first target for this long idea would be 4h resistance 4HR1. If price move extends beyond there, then the next relevant resistance level is daily resistance DR1.
Comment:
This bounced from 4h support 4HS1 according to our expectations. The price is very close to 4h resistance 4HR1 which is also our target for this long trade. Howoever, I will book profit here and let small size run further. I see an argument for the price to pullback from here.
