Since this massive spike it seems the bullish sentiment is expanding quickly. Which is excellent. Bullish sentiment is something that we need in order to continue the run up.
However, when taking a closer look at the recent leg on larger time frames. It appears to be nothing other than a simple retest of the major resistance line down, and the bottom of the daily pennant that was broken down from just a few weeks back.. Until these lines are broken it will be very difficult for me to add leverage positions with confidence.
Demonstrating the retest and major resistance:
Since I not leveraged, I am doing my best to search for major support. At the moment, it seems that 8700 could be that level.
Here's why:
1. At 8700 we have the 50% retracement from the recent top. Which is also the same retracement level that we hit this last bounce from the top.
2. Based on the range that we created the first weeks of October, 8700 should provide decent horizontal support.
3. Last but not least, 8700 also marks the bottom of the CME gap that was created over the weekend!
Now I have never been a gap trader, however with the additional technical support, it seems like a good place for me to put my money.
Also note: We have yet to break back above major resistance. Trade carefully.
I hope you all enjoyed this article and maybe even found it a bit interesting!
Wish you all the best of luck!
However, when taking a closer look at the recent leg on larger time frames. It appears to be nothing other than a simple retest of the major resistance line down, and the bottom of the daily pennant that was broken down from just a few weeks back.. Until these lines are broken it will be very difficult for me to add leverage positions with confidence.
Demonstrating the retest and major resistance:
Here's why:
1. At 8700 we have the 50% retracement from the recent top. Which is also the same retracement level that we hit this last bounce from the top.
2. Based on the range that we created the first weeks of October, 8700 should provide decent horizontal support.
3. Last but not least, 8700 also marks the bottom of the CME gap that was created over the weekend!
Now I have never been a gap trader, however with the additional technical support, it seems like a good place for me to put my money.
Also note: We have yet to break back above major resistance. Trade carefully.
I hope you all enjoyed this article and maybe even found it a bit interesting!
Wish you all the best of luck!
评论:
Even though the gap was closed on the CME Futures exchange, we have seen no correlation in our market.
交易开始:
8700 target hit
lets see if we bounce
lets see if we bounce
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