Break or bounce? As you can see we have a strong support zone that has been used many times before where candles have entered this zone and then bounced, now we are looking for more of the same again as price is currently in this zone, so a bounce and bullish movement.
The only thing to be wary about with this bounce is all the bearish movement going down into this zone, this amount of downwards pressure can sometimes cause a zone or level to break, but on the previous times price entered this zone and bounced you can also see there was good amounts of bearish pressure behind the move and the price held. Now you can look at it as a Ninja chopping a block of wood with his hand.. With every strike the wood gets weaker until it eventually breaks ( his hand been the candles and wood been the support zone ) So in time this zone will break, but I'm not really worried about it this time.
We will be waiting for confirmation of the bounce and a candle close bullishly outside of this zone though before we take the trade, so keep your eyes open and don't enter unless you get confirmation!
Oh and always use correct risk management... but I'm sure you are not that stupid by now ;p
The only thing to be wary about with this bounce is all the bearish movement going down into this zone, this amount of downwards pressure can sometimes cause a zone or level to break, but on the previous times price entered this zone and bounced you can also see there was good amounts of bearish pressure behind the move and the price held. Now you can look at it as a Ninja chopping a block of wood with his hand.. With every strike the wood gets weaker until it eventually breaks ( his hand been the candles and wood been the support zone ) So in time this zone will break, but I'm not really worried about it this time.
We will be waiting for confirmation of the bounce and a candle close bullishly outside of this zone though before we take the trade, so keep your eyes open and don't enter unless you get confirmation!
Oh and always use correct risk management... but I'm sure you are not that stupid by now ;p