The past 2 trading days formed a Bearish Engulfing candlestick pattern and today's price action provides confirmation we're going lower. My trading style clearly would have me exit this trade then watch it for a possible re-entry long.
However, we found support on the 34ema, and have further support from the 50sma below us as well as the bottom Flag Trend Line and previous support/resistance level at 635. And we have to give consideration that this price action may be a retest of the top Flag Trend Line that overshot the top of the Flag somewhat.
We're also about 75% the way into a Bullish Fry Pan Bottom pattern (its a version of a cup formation). If we recover and the Fry Pan Bottom pattern completes and breaks out we'll have a very strong upward move.
I may have gone off the reservation here, but I think it's worth suspending the rules to give this trade a chance to prove itself.
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