In our last post we identified the retracement and where it may retrace to before dropping once again. We are now near one of 2 reversal zones. The ideal reversal zone is the 61.8 fibonacci where we have structure and the descending trendline.
However, if we don't get enough momentum to push us to that level, the 50 fib looks to be the other reversal area. Either way we can watch the red ascending trendline for a break and enter.
Trade Idea:
- Watch for rejection of one of the fibonacci levels
- Enter with stops above the rejected price
- For safe entry, wait for the ascending red trendline to break
- Targets: 2200, 1700, actively manage rest of the positions incase we drop lower
See below for our higher timeframe analysis.
Goodluck!
However, if we don't get enough momentum to push us to that level, the 50 fib looks to be the other reversal area. Either way we can watch the red ascending trendline for a break and enter.
Trade Idea:
- Watch for rejection of one of the fibonacci levels
- Enter with stops above the rejected price
- For safe entry, wait for the ascending red trendline to break
- Targets: 2200, 1700, actively manage rest of the positions incase we drop lower
See below for our higher timeframe analysis.
Goodluck!
