Looking left, we have identified areas of support and resistance and can see that we have broken through the most recent resistance zone.
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 0.5 and 0.618 to identify an entry target for a long position. Both the 21 (white) and 50 (pink) EMA levels are looking at crossing over to signify a trend reversal and we may see some support from these EMAs as price looks to head upwards. Our final confluence will be the stochastic RSI going overbought.
For an entry we will be looking for a bullish candlestick formation such as an engulfing, doji or three bar reversal. Targets will be set at the previous high.
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 0.5 and 0.618 to identify an entry target for a long position. Both the 21 (white) and 50 (pink) EMA levels are looking at crossing over to signify a trend reversal and we may see some support from these EMAs as price looks to head upwards. Our final confluence will be the stochastic RSI going overbought.
For an entry we will be looking for a bullish candlestick formation such as an engulfing, doji or three bar reversal. Targets will be set at the previous high.
Trade active:
We entered the trade at 1800hrs on 24/05 after bullish buying pressure on the previous candle.
Stop loss is below the 0.5 fib retracement and 21 EMA and targets are a re-test of the previous high giving a 1:1 risk reward.
Stop loss is below the 0.5 fib retracement and 21 EMA and targets are a re-test of the previous high giving a 1:1 risk reward.
Trade closed: target reached:
Trade closed as 1:1 target reached at 0 level retracement.