2nd Retest of a strong historical support / resistance level, with an easy invalidation level to spot. Not the highest probability set up, but high R and low risk. Seem like quite an obvious set up on both the 1D and 4H. The strong rejection at the first retest indicates strength and increases the likelihood of a notable rejection this time around.
Trade active:
Short position opened. Candle almost touched S/L level, but as expected the Resistance Level provided a notable rejection. Will continue to monitor the trade. The chart looks good for further downside on the 4H, but the 1H Candle close above Resistance means that I remain cautious. Currently just over 1% down.
Comment:
Consecutive lower highs made on the 1H and 4H, though resistance does look as though it may have switched to support. Lower Highs and Lower Lows on the RSI after being overbought indicate that we may be toppy and a move to the downside may be imminent. We will see if this short term support level holds, it has already been tested several times on the lower time frames. Short Position still open.
Comment:
Stopped out for 3.25% profit, had earlier moved Stop Loss to the MA Level. If still in the trade, potential for further profit.