So, last night I put on this small short at 4194. My target were the 4150s to low 4170s: this was an ambush long area from the support/resistance we had hit in the 4120s. My plan for today would have been to close all my shorts in that ambush long and look for strength to reverse my position: I guess I should have done it all on a limit order...my short trade was basically break-even.
Last Thursday, I warned that while we could have a potential head and shoulders formation in the works, I had also spotted a secondary rising trendline and momentum was rising and warned for caution. We have now fully retraced above the 61.8% from the January 6th high to the March lows. The next major resistance is in the 4330s, which matches with the upper boundary of the ascending channel we are in, and was hit twice for a double top earlier this year.
I'll be looking for a long entry today, but beware that we have US data coming out and that tomorrow most (if not all) European markets are closed and that Monday is a UK bank holiday.
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