Good morning,
Jim put an interesting question regarding cable's potential price direction. In my own point of view, cable did not have a strong day close last Friday. Price dipped closer to the end of day. As you can see on the chart cable has not defined yet a clear upper slope of the channel while the lower one is shown. Was the recent top a false breakout or a marked point for the future channel width? I've put a red line to indicate this. From my perspective I would choose a tactic if Line A happens to be a support rather than a resistance. I will wait for 4HR or longer close for the price to draw a clearer picture. Hope it answers what my trade plan can be.
Jim put an interesting question regarding cable's potential price direction. In my own point of view, cable did not have a strong day close last Friday. Price dipped closer to the end of day. As you can see on the chart cable has not defined yet a clear upper slope of the channel while the lower one is shown. Was the recent top a false breakout or a marked point for the future channel width? I've put a red line to indicate this. From my perspective I would choose a tactic if Line A happens to be a support rather than a resistance. I will wait for 4HR or longer close for the price to draw a clearer picture. Hope it answers what my trade plan can be.
3 comments:
Tamara, I believe the red candle is the result of traders closing shop for the day on Friday and I am not reading too much into it. So that being said, you want to wait for a candle or 2 to confirm whether it is going to continue long to finish the outer channel you described. If this is true, would a green candle close above, say, .9773 could be an entry toward the red ine on your chart. Or am I way off base.
Jim
that's correct - this is how I read the market. A close (4Hr or 8Hr) above 1.9740 would suggest the price is on support of Line A and can move towards Line B.
Hey, this proved to be right! Too late, though, for my PL. Well, let's wait until the price goes to the Line B and bounces.
Post a Comment