What a move! As mentioned on previous post if there was a close below 4120.50 there was nothing stopping it from a massive drop towards the 240min 50% correction. It ended the day with that 50% retracement acting as a level of support. With todays drop we are still in a PRIMARY TREND, this persist until the weight of the evidence proves otherwise and it starts to reverse on THE WEEKLY AND MONTHLY CHARTS. As of this writing the trend stands as follows, PRIMARY = Uptrend, SECONDARY = Sideways, and SHORT-TERM/INTRADAY = Downtrend. Two very important levels that I will be watching for tomorrow. Both are confluence levels with support, demand, MA, and fibb retracement of 61.6%!! These levels of confluence tells me I must be BULLISH when price drops there, with a high probability of a reversal to the upside to begin and with that the primary trend to continue. These levels are on a 240min chart around 4032 and on a daily chart (EVEN STRONGER LEVEL) around 3967. One can drop to a smaller data interval (time frame) and sample a smaller level from these higher time frames to mitigate risk. (EXAMPLE: On the 3967 daily level if you drop 1/4 to a lower time frame to a 240min one can lower the level to around 3950 rather than 3967 lowering your risk, the pivot low remains the same around 3928.75) This can help mitigate risk which is its pro, its con is that sometimes price never reaches that lower price because the competition to buy it cheaper gets higher and higher and some traders/investor might front run you to make sure they can buy the asset.
Trade closed: target reached:
Target reached for 240min Long