Clearly over the last few weeks this has been a market with very low volatility and I think this is partly because we are trading at a very key level of support where the market is very reticent to dive lower than the level we're currently at. This is reinforced by the candle wick two days ago which was nicely rejected and price closed in and around this highlighted support. Hence I like this as a quick counter-trend trade as we have a small double bottom formed on the daily at this level where I expect a move back up to/past the neckline to form this week.
My targets aren't too large here and trading a support line makes for great risk reward here (this particular trade is 2.4:1) where I can have a tight SL at 40 pips under my buy entry and a TP 80-100 pips above.
I would be tempted to place this as a buy stop towards the top of the wick of the last daily candle in order to confirm this rebound off the support so that the market can confirm my analysis before entering the trade.
My targets aren't too large here and trading a support line makes for great risk reward here (this particular trade is 2.4:1) where I can have a tight SL at 40 pips under my buy entry and a TP 80-100 pips above.
I would be tempted to place this as a buy stop towards the top of the wick of the last daily candle in order to confirm this rebound off the support so that the market can confirm my analysis before entering the trade.