3) If we will not push higher immediately, it is possible, we will visit $7800-7900 level and I will pay myself here (pay trader) from our $8200 shorts and will be watching how much this support is strong. If it will be weak, we will “rally” up to $8000 (in this area $8000 you can add into your shorts) and sell off again down to $7500.
4) In this scenario, price broke $7700 level and my eyes are at $7500 level where I am expecting another support, if you are still holding your shorts here, you can sell another part and add more at re-testing $7700 level where price should reach from our outlined support at $7400 and sell-off from this $7700 again down to $7200.
5) This area is a key for me, once we lose it, we will have High time frame market structure break and it is very possible we will visit $6800 and lower levels. If I will see that price has found support and bullishness at $7500 followed by a breakout up to $7700 I will close all my shorts and again switch to swing long up to $9000. Why? In this case, strong support followed with LTF reversal caused losses of late shorters which can put an injection of their liquidations and push price higher.
Published at Mon, 13 Jan 2020 10:17:44 +0000