We got a lovely rejection wick off the daily on Friday and it beautifully bounced off the 200dma and a falling trend line. Great bit of confluence. Stops above that wick and shoot for a 50% retrace on that type of move the 50 back gives us a RR ratio of 3.5-1. Might even get down to previous lows if wanted to stretch for longer targets but don't be greedy.
PA has struggled on the weekly leaving some nice wicks. Looking at the Daily time frame it's easy to see some levels. I'd prefer to see the shooting star from 2 weeks ago get tapped on the inside (as often happens) then go short but if wicks are your thing and it works for you then go short now. I've then got my eyes on the level that has acted like a magnet for ...
Currently got an outside channel test which even if it breaks above there's that huge downward trendline not far above which is bound to give us some resistance. Break above and then a test of that we could be looking at continued bullish action. Look for the cheap trade with tightest stops on the test of the trendline if this is the case.
After the bearish cypher pattern is close to completing its 38.2 retrace, what's next? Right now it's at an interesting point as it rests on top of the downward trend channel and takes a breather. Quite simply we need to wait and see but it's certainly an area of interest. I'll be looking to price action to look for a good entry either way.
Try a short off this level with stops above the thrust candle PA back to previous lows, swing trade really may have to hold a few days. i don't liek that it's already tested but as it's only second time, first wasn't quite close enough so it's worth a pop. Could hang on to the slighter higher level of .7230.
Pretty much as the title says. We're up to the major downward trendline. Current market conditions can easily mean this thing ploughs through and on up but technical is technical and we are where we are. Great opportunity with minimal risk. Personally i'd like to see a new step down to around 900 even 800 for some long term buying opportunities, will we see it?