Prices traded in a tight range last week but have found strong resistance at the 54.6 level. So far the daily demand line has seen 3 bounces and will likely be tested again by Wednesday. Although prices rallied on the unexpected neutral reports last week I doubt we will see another week of the same; as well, the DX seems to have found some temporary footing and I believe that although March rate hike sentiment is low that it will still bring out potential fear, pressuring oil and elevating the USD. I am looking at 54.30-54.75 as a selling zone and on a break of the demand line will look for a retest of the Last Point of Demand - targeting 52.36 after which I will look for prices to validate the demand/supply exchange and retest the 53.30 level.
Good trading all! Comments and questions are welcome!
Good trading all! Comments and questions are welcome!
Comment:
Prices have close below and broken the 14 week demand line. With rate hike sentiment increasing which should continue to elevate the DX and pressure oil prices; I will expect continued breakdown and am looking for TP2 short term after which i expect some consolidation in the lower trading level.
Comment:
If we see further breakdown; these are my assumptions of lower consolidation over the next 5 trading days
s3.amazonaws.com/tra...shots/h/H7A3MkNX.png
s3.amazonaws.com/tra...shots/h/H7A3MkNX.png
Comment:
Target 1 reached; still waiting on target 2: If you are not already active in this short please see next weeks chart for entry level:
www.tradingview.com/...-Chart-Supply-Level/
www.tradingview.com/...-Chart-Supply-Level/
Comment:
TP2 target reached; taking profits is always a wise move and that is what I would advise; however I am holding short as my downside targets are much lower; this trade is closed; see my larger short target here: www.tradingview.com/...l-If-It-s-Not-Broke/
