Bullish Scenario
Price holds above the 217.44 support level
Price can commit above the 249.00 price level. Why- look at the amount of effort it takes for price to move through the 217.44 level to get to the 249.00 price level.
Price can break 249.00 and 264.50 and stay there. Why - Supply starts to overcome demand on the last two rallies that broke through 249.00 and 264.50.
If price can overcome 249.00 and 264.50 and stay there, we can see if the high at 364.49 can be tested.
For a long trade one can wait and see is price holds above the 217.44 price level and takes a run at 249.00 and 264.50 again. Personally, for this trade I would want to enter when price confirms again (or tests the last short-term low) that the 217.44 support level is going to hold as support. That way I am in the trade on the way up before price hits 249.00 and 264.5. This allows me to move my stop up and not take a loss if supply over comes demand at those levels again.
Bearish Scenario
Price breaks below 217.44 after the short-term high formed at 249.00 from the last rally off 217.44 support.
If 217.44 is broke to the downside, price should fall to the 199.5 to 184.5 price range I have labeled as an axis range because of the multiple short-term highs and short-term lows in that price range.
After the 194.5 to 184.5 price range. We should see volume off the lows again as seen on the prior decline. This suggests that this will be an area where accumulation will happen on the way down.
One could look for a short-term short trade back into the price areas listed in the bearish scenario, and from there look at exiting your position.
I am currently short and I will exit if I see a reversal above 217.44 or a reversal on the 50 SMA.
This is not a recommendation for a trade!!
Trade closed: target reached:
closed out short position at 115
entry was 234.26
entry was 234.26
SL was moved to lock in profit