Opened longI opened a long position.
Ideally it is safe to wait for EMAs to line up for the bull trend (EMA21 > 55> 200) in the Daily chart. However, there are many indications that the price will start to move to the upside and the upside move might be quite aggressive. So I decided to open a long position with a small position size.
The reasons for opening a long position:
Daily:
Bull candle has closed above EMA21 for a few times.
RSI lines have crossed and entered the bull zone.
MACD lines are about to enter the bull zone.
Stochastic lines are above to cross and move up.
The price has been staying above Fib 0.236 level for about 10 days.
The price has broke and closed above the descending parallel channel.
4H:
All momentum indicators are in the bull zone.
EMA21 is above EMA 55.
The price has closed above EMA200.
The price is consolidating above the top descending parallel channel.
It is not the perfect bull trend set up, however, there are enough confluences for the price to start to move to the upside.
Entry price: $142.59 (blue horizontal line in 4H chart)
Stop Loss: $130.40 (red horizontal line in 4H chart)
Target: $195 (green horizontal line: Fib 0.5 level in Daily chart and fair value gap zone)
$178 is a strong support and resistance area, so if it starts to stall, I might take a partial profit.
Fingers crossed.
