Looking left, we have identified areas of support and resistance and can see that we have broken through with a strong impulse move, the most recent resistance zone - this zone also acted as a consolidation channel during late April and early May.
We are now waiting for price to retrace back to what we anticipate will become a zone of support.
We will review the Fibonacci retracement levels of 0.382, 0.5 and 0.618 to identify an entry target for a long position. At present, the 0.618 level appears to align best with the zone of previous resistance. Both the 21 (white) and 50 (pink) EMA levels are looking at crossing over to signify a trend reversal and we will look to the 21 EMA in confluence with a fib level as a reason for entry. Our final confluence will be the stochastic RSI going overbought.
We are now waiting for price to retrace back to what we anticipate will become a zone of support.
We will review the Fibonacci retracement levels of 0.382, 0.5 and 0.618 to identify an entry target for a long position. At present, the 0.618 level appears to align best with the zone of previous resistance. Both the 21 (white) and 50 (pink) EMA levels are looking at crossing over to signify a trend reversal and we will look to the 21 EMA in confluence with a fib level as a reason for entry. Our final confluence will be the stochastic RSI going overbought.
Trade closed: target reached:
Although not where originally anticipated due to price rallying higher, we did get a valid entry for the trade.
Targets were reached with a 2:1 reward.
Targets were reached with a 2:1 reward.
Trade continues to be monitored for a valid entry.