Well, I'm pushing out of the comfort zone a bit at the Close today. You can see we're closing a little under the 8ema. Technically, I should exit the position, but I think we're close enough to the 8ema to give it a chance to recover tomorrow and go back up. If we don't, we'll have to exit and watch for an opportunity to get back in.
If you look left you'll see 4 peaks followed by a swoon back down, then a recovery to the upside. We're in the swoon after the 4th peak. Since this peak is at the same level as the first peak, I expect a little extra volatility, which will result in a Cup and Handle pattern. This will probably mean we'll need to exit tomorrow. But the good news is we may be able to re-enter our long position from a lower price, and thereby give us a better Risk/Reward ratio and ultimately an opportunity for greater profits.
No comments:
Post a Comment