We saw good moves from the very start of last week leading to price on Thursday breaking and closing above long term consolidation which dated back to November of last year. NFP Friday saw price break and close above the key level of 1500. Yesterday and so far today, price is retesting the 1500 level as support. We would like to see this hold strong, for price to bounce off this level and break and close above the high of yesterday, ideally in the form of a .
This will suggest a trend continuation and offer a long entry into this bull move. Looking deeper:
Monthly - Price is trading above the high of 2017 and has been trending very nicely for many years now.
Weekly - Price is trading above the 200SMA and the 50SMA.
Daily - Price is trading above the 200SMA and the 50SMA.
We have a trend in progress and alignment across all 3 timeframes but we now need to apply patience for an optimal entry point and that is when price we get the breakout above Friday's high.
The next key level that we would like to see price move towards is the major round number of 2000. Round numbers act as magnets that price gravitates towards when in a trend. Understanding this, as well as in general, helps with letting winning trades run as well as knowing when and how to tighten stops.
Patience for now on this UK stock and wait for the entry point to present itself.