NQ1!, False Breakdown, Positive Divergence, Trapped Shorts
A strong move down driven by a headline with a strong reversal is today's theme. There are a few reasons for a strong bounce (look at a weekly chart) :
- a failed attempt to breach a weekly trend line.
- 50% retracement Fib level
- notable positive divergence
I did not expect a strong reversal, however, on my chart I had 7577 support level and put a limited order to buy ahead.
Both short and long opportunities were available today.
The market is back above the existing support level and most likely would balance and grind to the resistance above. Tomorrow is NFP and end of the week. Anything may happen :) But an expectation is for the market to hold the support.
Stay nimble.
10/3/2019
- a failed attempt to breach a weekly trend line.
- 50% retracement Fib level
- notable positive divergence
I did not expect a strong reversal, however, on my chart I had 7577 support level and put a limited order to buy ahead.
Both short and long opportunities were available today.
The market is back above the existing support level and most likely would balance and grind to the resistance above. Tomorrow is NFP and end of the week. Anything may happen :) But an expectation is for the market to hold the support.
Stay nimble.
10/3/2019
