We are waiting to see if todays candle closes above or below this key resistance level, you can see how strong this level is by where price has previously touched this level and then bounced, But we think price will bounce and make further movement to the downside.
You could look at this the same way as buying a house, would you jump in and buy the house straight away, or would you get the house checked out and check the foundations are ok by professionals to make sure nothing is up with it?
Same applies to support and resistance levels, you must wait to see if price breaks or bounces off them so you can assure the foundations of the trade are stable! After all you don't want to buy a dodgy house that will end up costing you money... and you don't want to go placing a dodgy trade that will also cost you money.
So do your research before doing anything!
You could look at this the same way as buying a house, would you jump in and buy the house straight away, or would you get the house checked out and check the foundations are ok by professionals to make sure nothing is up with it?
Same applies to support and resistance levels, you must wait to see if price breaks or bounces off them so you can assure the foundations of the trade are stable! After all you don't want to buy a dodgy house that will end up costing you money... and you don't want to go placing a dodgy trade that will also cost you money.
So do your research before doing anything!