Looking at the chart 7am ET 1/21/2020 you can see the previous trading day was a bearish harami red candle. This is a sell signal and stochastics are overbought, so we need to watch this carefully. However, the last candle closed over the 8ema after a bullish break out.
My interpretation is this is a retest of the break out level preceding a resumption to the upside. Normally I'd use the 8ema as a trend indicator, but on the current chart I'll use the angled upper downward trend line as the trend indicator. That means if we close above the trend line I'll hold the position, and if we close below it I'll have to sell the position to stem losses on a possible further drop.
The upper downward trend line coincides with the 200sma and 20 sma, and perhaps the previous swing low, depending when the candle hits the trend line. This suggests a significant support level.
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