Well, this once promising trade has been ruined by the COVID-19 pandemic. Today was another day spent completely under the 8ema and the most recent swing high peaking 2/12/20 has a lower high than the previous swing high on 2/6/20. That's a bearish indication.
However, we haven't closed below the 200sma since we entered the trade on 2/12/20, or the 6 trading days before that. That makes it a more difficult choice.
If we hold the position, it could go back up, especially if there's promising news. But we have no technical edge on hoping for good news. The 200 sma support could keep us afloat though until good news does come to bail us out. That idea doesn't carry much weight against the fact that we closed below the 8ema the past 3 trading days in a row.
Really, the choice is clear. Only emotion has me looking for an excuse not to bail out on this trade. If we get out now versus waiting for price to hit our stop loss, we'll cut our losses approximately in half.
So I waited for the end of the trading day for the grains market, giving ZL the chance to reverse. But it didn't, so I sold it for 30.49.
Loss is (30.49-30.94)*600/pt=$-270. Not good, but necessary.
BTW, ignore the tiny little candle at the far right of the chart. That's trading from the 8:00pm ET beginning of the overnight session.
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