There is a big support line, that I would rather to enter the trade in hourly chart and keep it for couple of days.
There is 5 days in a row market with red candle, never close above yesterday since June 16.
Stochastic doesn't show buy signal yet.
SMI is in downtrend.
But momentum in downtrend is dropping.
So we are closing to execution zone., or even in Execution...
Every time there was a spike in volume,
The price has a gap,
And then
There was a pull back
So wait until the price hit the bottom of channel
There is room to pull back in short term
Long term still Bullish
After a long run , there is a pull back since Jan 2014.
the down trend is broken and it is a good opportunity to go long, with a nice continuation pattern.
The entry point can be one of the Fibo retracement levels, and can be done in 2- 3 stages.
Alcoa is still doing well and the continues its trend since October 2013 and gains 80% up to now.
It is moving along a channel which is a little bite like an ascending wedge.
There is more rooms to hikes , but ones has to be careful and tight the SL
On the other hand the volume is not significant .
A doji right at the resistance trend line is another sign to be...
Trading Frame:
K rising
Momentum rising
Higher time frame:
Uptrend and rising momentum
high volume in last two days
Risk / Rewars : 1.21
ATR: 0.61
Trigger: 20.22 + 0.15 = 20.37
Conclusion:
Wait for short term pull back to buy
