In trading there is support and resistance levels are trap for sellers and buyers. These are levels that are set up artificially to lure in traders to enter into trades with the false sense of security that there stop losses are safe above or below the support/ resistance levels. Most of the time you will find that these levels are manipulated before the real moves happens. So for example the market movers will set the levels up, intensionally to trap traders. I will try and load a video shortly to try and give an illustration of what I feel could happen next.
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could retrace deeper but for now demand seems to be holding. 20400 is a key level. Nevertheless, still in a reaccumulation range.
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Wave 1 retraced 0.71% so could see wave 5 retraced roundabout the same level if 20400 is broken
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Remember waves 1-5 is an impulse and each wave comprises of 5 smaller waves. in some cases wave 1-5 is a fractal of waves 1.
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Hope is makes sense. I am not a wave specialist. Need Azzz for this. I just stick to the basics which gives me an idea when a move has ended
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So 18000 would be better level to buy.
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Trade closed: stop reached
Lord MEDZ