Has some important levels in this tight area. Today sold into demand after breaking down from upward wedge. Held the demand zone and started making higher lows, setting up potential 1 - 2; 1 - 2 waves out. But, some hurdles here and big things to watch:
1) breakout from demand means nothing if it can’t clear 271.38 on the potential next attempt; failing to do so can cause more time in the demand zone. More time in a zone weakens it;
2) just above 271.38, price action will have to deal with the recent down trend line which happens to align with a small supply zone. The supply zone is only a 15 minute time frame so not that strong of one;
3) if we open tomorrow with a bid down, 265.43 is the key support level. A print below this will be a lower low and opens the door to trade down to 261/260 quickly
Game Plan: if price catches a bid up, I’ll look to enter a small long with small risk. Clearing those hurdles and it can trade to 278 pretty easily I believe. If price is bid down, I’ll watch to see price action and pressure on the key support price. If it breaks, will enter a small short trade. Small because demand levels below are pretty up in the air I believe at this moment and will just look to lock in a profit
NOTE: if we have a large gap up/down above/below these levels, I’ll sit this one out until a clear range presents itself to wait for price to enter to either long or short
1) breakout from demand means nothing if it can’t clear 271.38 on the potential next attempt; failing to do so can cause more time in the demand zone. More time in a zone weakens it;
2) just above 271.38, price action will have to deal with the recent down trend line which happens to align with a small supply zone. The supply zone is only a 15 minute time frame so not that strong of one;
3) if we open tomorrow with a bid down, 265.43 is the key support level. A print below this will be a lower low and opens the door to trade down to 261/260 quickly
Game Plan: if price catches a bid up, I’ll look to enter a small long with small risk. Clearing those hurdles and it can trade to 278 pretty easily I believe. If price is bid down, I’ll watch to see price action and pressure on the key support price. If it breaks, will enter a small short trade. Small because demand levels below are pretty up in the air I believe at this moment and will just look to lock in a profit
NOTE: if we have a large gap up/down above/below these levels, I’ll sit this one out until a clear range presents itself to wait for price to enter to either long or short
While I didn't play this today, looking like it is putting in/completing wave 3 up (white numbers). Price went within 20 or so cents of the fib extension AND it is in alignment with a supply zone. What I would look for is a retrace to the .236 / .382 fib lines in yellow to represent a corrective wave 4 down.