I. Analysis
1. Stock ranging since end April until beg May after a steep sell off. Broke out below support level tested trice + stock trading below 50MA. - Bias is short
2. Previous support turned into resistance with the breakout had been tested trice and hence works as a good vale area + price is now leaning against 20 and 50MA
3. Bearish engulfing candle formed at the convergence of these three structures abovementioned - so we have an entry trigger as well
Idea is to trade this throwback, form a value zone with a satisfactory entry trigger.
II. Trade
1. Go short next candle
2. SL 1 ATR above highs of the bearish engulfing candle
3. TP next swing low
Plsd to hear yr comments
Cheers
Ruben
1. Stock ranging since end April until beg May after a steep sell off. Broke out below support level tested trice + stock trading below 50MA. - Bias is short
2. Previous support turned into resistance with the breakout had been tested trice and hence works as a good vale area + price is now leaning against 20 and 50MA
3. Bearish engulfing candle formed at the convergence of these three structures abovementioned - so we have an entry trigger as well
Idea is to trade this throwback, form a value zone with a satisfactory entry trigger.
II. Trade
1. Go short next candle
2. SL 1 ATR above highs of the bearish engulfing candle
3. TP next swing low
Plsd to hear yr comments
Cheers
Ruben