So looking at the current Daily, we did a nice test at 6516 on a monthly spinner and a daily failure. We had a good 20% buyback from there which in my opinion is a strong sign of support.
Meanwhile.. we are ranging between strong resistance(7800) as highlighted in the green box and 7300 which now functions as support for the last couple days. This 7300 spot, makes this nice W pattern, where you want a higher low to be made in range, and then a break of resistance on the upside to confirm the higher low(red line is ideal movement).
SO.. if this all plays out, if have highlighted red boxes where to look for potential targets in case of breakout. NOTE these spots can function as possible short spots aswell, stop are easily defined. (if you are looking for shorts on those spots, longers are looking for profit targets on those spots.)
A 3rd day of closing with 7300 as support might trigger some interest in buying, pushing us up to the 7500s for a 1st test, and possibly 7800s testing the highs of the range. A failure can happen, but that means we have to find support HIGHER than 7300, preferably at 7400s. For another try. I would NOT like another failure, this will be sign for me we will test the bottom of the range(and will most likely fail, 6700s on the 4H is a decent spot). But being hedged in a short on a 2nd failure would be my play, and SL at 7300 for my longs.
Meanwhile on the lower time frames there just some testing, but daily is showing nice price action to make decisions of.
Looking at the TTM indicator, the down momentum is fading where we have been in from 7 Nov, so we have that in favor aswell.
Meanwhile.. we are ranging between strong resistance(7800) as highlighted in the green box and 7300 which now functions as support for the last couple days. This 7300 spot, makes this nice W pattern, where you want a higher low to be made in range, and then a break of resistance on the upside to confirm the higher low(red line is ideal movement).
SO.. if this all plays out, if have highlighted red boxes where to look for potential targets in case of breakout. NOTE these spots can function as possible short spots aswell, stop are easily defined. (if you are looking for shorts on those spots, longers are looking for profit targets on those spots.)
A 3rd day of closing with 7300 as support might trigger some interest in buying, pushing us up to the 7500s for a 1st test, and possibly 7800s testing the highs of the range. A failure can happen, but that means we have to find support HIGHER than 7300, preferably at 7400s. For another try. I would NOT like another failure, this will be sign for me we will test the bottom of the range(and will most likely fail, 6700s on the 4H is a decent spot). But being hedged in a short on a 2nd failure would be my play, and SL at 7300 for my longs.
Meanwhile on the lower time frames there just some testing, but daily is showing nice price action to make decisions of.
Looking at the TTM indicator, the down momentum is fading where we have been in from 7 Nov, so we have that in favor aswell.