Yesterday's red Doji candle closed at 26.50. Today we opened at 26.49. Obviously today's close is much higher than yesterday's open. Therefore, together they form a Bullish Engulfing candle pattern. This is bullish.
We closed above the 8ema and 3ema. This is bullish.
Stochastics are not overbought, so they won't provide resistance to further upward movement.
Yesterday's volume is lower than the volume for the green candles on either side of it. That seems bullish, although that was never part of my training.
The past 3 days we've found the 38.2% Fibonacci to provide a little resistance. This is not uncommon. In fact, its common to get an actual pull back off the 38.2 Fib, and sometimes that's all the upward movement you get. But today we closed over the 38.2 Fib, indicating we have broken its resistance. This is bullish.
However, we're about to hit the 20 DMA. That could be a problem. It can provide significant resistance. In the wider view of the chart above, you can see where we hit the 20 DMA from below and rejected off it and went back down twice before. Look at 2/6/20 (32.33) and 3/5/20 (30.16).
I was sorely tempted to exit and take the $500+ profits today before the weekend and before we hit the 20 DMA. But the 50% Fib of the green range and the 38.2% Fib of the yellow range are just above the 20 DMA, and we've been looking pretty strong so far.
So, I had to put on the straight jacket and hold myself back from exiting because I think staying with the trade is the smarter, unemotional, decision.
No comments:
Post a Comment