After closing well below the 8ema yesterday, today we went back up and retested it. Then we came back down and closed a little lower than yesterday's close, but above the 50sma.
The 50sma can supply significant support, so it will be important to close below it soon. Wouldn't be surprised if we bobble between the 8ema and the 50 sma for a couple few days.
If we can break through the 50sma, as this trade expects, the next challenge will be the 61.8% Fib, which I expect will be coincident with the bottom Bollinger Band and Keltner Channel by the time we hit it. After that, it looks like clear sailing down to the target.
When we hit the 61.8% Fib, I'm expecting to move our Stop to break even. The 61.8% Fib may be all we get. Meaning we may reject off the 61.8% Fib and climb back up without ever reaching our target.
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