Undid a lot of the gains I made on the recent uptrend by allowing sentiment and emotion to be dominant in decision making. Trying to reset and get back to basic TA, since the emotional angle isn't much fun and the TA is far more interesting. This charts declares my position, reaffirms my current view of the market, and what action I'm looking to take.
Currently short with target at 6200 which represents weekly resistance that helped stop yesterday's dump and stop-loss at 6450 above weekly/daily resistance.
Supporting position:
- Clear downtrend still in play.
- Lingering near the bottom of the channel.
- Will have to fight through weekly/daily resistance with MA(9) also starting to squeeze.
- Has some distance to go before we are close to breaking from the channel.
Challenging Position:
- 4H and 1D both looking oversold.
- Support found at 6100 looked pretty solid (as yet no further retest).
Expect a period of consolidation - downtrend momentum halted, considerable channel to cross, no reason to expect a substantial/quick rebound. Too early to recognise any trading range but resistance coming from above so happy to maintain a position currently.
Actions:
- Exit position if resistance broken or target met.
Currently short with target at 6200 which represents weekly resistance that helped stop yesterday's dump and stop-loss at 6450 above weekly/daily resistance.
Supporting position:
- Clear downtrend still in play.
- Lingering near the bottom of the channel.
- Will have to fight through weekly/daily resistance with MA(9) also starting to squeeze.
- Has some distance to go before we are close to breaking from the channel.
Challenging Position:
- 4H and 1D both looking oversold.
- Support found at 6100 looked pretty solid (as yet no further retest).
Expect a period of consolidation - downtrend momentum halted, considerable channel to cross, no reason to expect a substantial/quick rebound. Too early to recognise any trading range but resistance coming from above so happy to maintain a position currently.
Actions:
- Exit position if resistance broken or target met.
Trade closed: stop reached:
Stop-limit triggered at 6450 after a breakout through resistance. Resisted urge to open a long in the hysteria and euphoria that breakouts along with the candle - that patience was rewarded as the breakout has retraced 50%.
6350 holding as support for now but the lack of follow-through from bulls means no further action necessary until 6700 is threatened or support fails (at which point will look re-open a short depending on setup).
6350 holding as support for now but the lack of follow-through from bulls means no further action necessary until 6700 is threatened or support fails (at which point will look re-open a short depending on setup).