We got a nice break of our trend line, combined with a double tops!
TDI is bearish, but price is currently still in our flipzone... (previous resistance, now support)
Best thing to do here is to confirm first: wait for the break + enter the retest.
Profit targets for shorts are .382 - .618 on the fib. scale.
Rejection of the flipzone invalidates the short...
Interesting price action on the daily!
Early buyers have been shaken out of the market.
i. Price in demand zone
ii. Price on main trendline
iii. Rejection wicks
Looking to go LONG to the next zone if bullish price action develops.
A break to the downside invalidates this trading idea.
Watch how the price acts like a magnet to trend lines!
We observe a break of the main trend line which is almost instantly followed by a up thrust back to it.
We can use these retracements to open positions with better RISK vs REWARD RATIO (RRR) than conventional enter-upon-break strategies.
Different scenarios are possible as price has not chosen a clear direction yet:
- Ranging price
- Ranging TDI -0.21% indicator
I expect a move to either the supply or demand zone followed by a correction to the flipzone or main trendline .
Thoughts on Silver.
Looking for one more move down into the area of the demand zone, EMA 800 and main trend line before taking off.
Wait for strong bullish confirmation before entry.
Please remember patience is key here.
This is a weekly chart.
AJ's zone play
We observe selling pressure.
I will join for a sell opportunity if the price reaches the supply area once again.
I will wait it out and look for a buy opportunity @ the major trend line.
Please remember anything could happen here.
Price has reached a potential demand zone
RSI is oversold
Waiting for signs of exhaustion/reversal. Preferably candlestick formations
Close below the potential bear trap/stop loss zone will invalidate the idea