Long I opened a long position for a swing trade this morning.
A daily candle is still below EMA 12/21/55 and has not broken above the descending resistance line, however, I see a lot of bullish signs in the chart. I am cautiously optimistic, however, the bull is not in full control yet.
Daily:
Stochastic formed a clear positive divergence and is no in the bull zone.
RSI lines are trapped inside the descending triangle. The momentum is clearly building up and I am anticipating it to break to the upside given RSI line is starting to move to the upside and slow
MA (orange) line is also starting to tilt to the upside.
MACD lines are still in the bear zone, however, histogram shows the bearish momentum is weakening.
A daily candle is still below EMA 12/21/55, however, the price strongly held above the previous higher low at $190 (blue horizontal line) .
A daily candle is also above EMA200, two major support lines (purple and orange lines).
4H:
All three momentum indicators are in the bull zone now.
The price moved to the purple support line, moved up, retraced to retest Fib 0.382 level.
The price is above both EMA 12 and 21.
Trade plan:
Entry price: $202
S/L: $189
Target : $223
