With the price gap not yet completely filled and momentum now definite to the downside, I have placed a SELL trade. There has been a break of channel and test of trend line as well as lowest recent buying limit (blue horizontal line). MACD is not only crossed but has come back below ultra bullish phase. 15SMA and 5EMA have crossed and this pull back looks like wave B of a three wave corrective phase after the five up. Once the gap is filled, I am sure price will start to move up in the channel.
Comment:
Move stop to break even/small profit. I was thinking about taking full profits once the gap has been filled. However, this is no more than a "gut" feeling. If the trade is a winning one, then let it run. Therefore, I have actually moved my take profit target down to the last major selling interest price 71.95 which coincidentally happens to be the 61% FIb retrace line.
Comment:
Manually moved stop to 76.91. Price has reached the top of the last bearish candle selling wick. Hopefully the selling will continue down to the 61%fib.