At the moment this market is showing signs of minor momentum confirmed by the lower highs made at a key of 273 (This level has been in play as a major support previously). A reasonable retracement is a move into the 258 to 250 area. It is wide, but there are plenty of minor supports to reverse from. If price falls below 250, the next major is in the mid to low 240s. I would look for stabilization there before taking any action. The key level that will negate the scenario is a break below the 229 support. Trading back into the low 220s is a serious sign of weakness and for me, a good reason to stay out and reevaluate.
If a reversal pattern appears and validates within the 250 to 258 area, I am looking for longs. My risk will be measured from the 250 low. My conservative target is 278 (T1) and more aggressive target is 292 (T2) and my over the top target is 309 (T3) because this market will really need to have a lot of enthusiasm behind it to see that price again. It's possible, but not likely in the next couple of days in this low activity environment.
Are there other indicators that could help me decide when it's time for a reversal? Support levels + HH + HL are helpful but was wondering if there's another dimension.
Additionally, how could one know that the price has "stabilized" - What is the time frame needed to say it's been stabilized?