Well, this is getting a bit frustrating. Price seems to want to weigh to the downside, even though we want it to hit 800 so much. Shows how much influence we have. The chart below shows action during the European session today. It’s basically gone as follow: break, consolidation, break, consolidation. We’re currently trading just ahead of the 740 mark, and it’s looking like sentiment is very much to the downside right now. Not too much of an issue for our intraday operations, but a little frustrating on the longer term efforts.
Anyway, I’m moaning, so let’s move on.
We’re going to go in heavy this evening, and try and book a substantial run on any action ahead of the Thanksgiving break. Yes, a lot of volume comes out of China, but there’s a very high chance that volume is going to scale back over the next couple of days, and this could make things a little sideways/choppy.
So, here’s what we are looking at. Take a look at the chart to get an idea of where things stand, and where our key levels are this evening. As ever, it’s a five-minute chart, and it’s got our key levels overlaid in green.
As the chart shows, the range in focus for this evening is defined by in term support to the downside at 736 and resistance comes in at 744.
We have just shy $10 worth of range to play with, so there’s plenty of room to go at action with an intrarange approach. A bounce from support will signal long towards resistance, while a correction from resistance (looking more likely given current levels) will signal short towards support.
Looking at action from a breakout perspective, if price closes above resistance we will look to enter a long trade towards a target of 755. On this one, a stop loss somewhere in the region of 740 helps is to maintain a positive risk reward profile. Looking short, a close below support signals a downside position towards 727. A stop loss at 739 defines risk.
Charts courtesy of SimpleFX