I saw someone discussing SRM on twitter so thought Id take a look.
There question being.....that they were under water with their trade right now and should they cut it loose.
My answer would be yes, cut it loose.
You have the attempt to break the overhead resistance, but it is failing, (deviation), bearish signal.
also, we are putting pressure here on the support.
You also have the steep pull back into the support there. Had it been more gentle/gradual correction into support, we might look to long, but it was such a steep correction, i would say its bearish for me.
Here on the chart I hopefully highlight some areas where someone might go long once more.
Also on the chart, Im looking at the overhead resistance. Targets. I can envision the formation of an inverse head and shoulders here with time at this resistance 1.10.
(The chap whos in the trade that is under water, might get lucky and we might finish this rally to the overhead resistance, target area. Or they might get lucky in the fact that we only correct slight more to the 0.86 area before continuing up) (Either way, Id be selling @ 1.10)
Final thought on cutting the trade loose...even if you cut it loose, and then after letting price action take its course, you re-enter in the same place, then so be it, but at least youve protected your capital and accounted for the option that it might really take a hit.
There question being.....that they were under water with their trade right now and should they cut it loose.
My answer would be yes, cut it loose.
You have the attempt to break the overhead resistance, but it is failing, (deviation), bearish signal.
also, we are putting pressure here on the support.
You also have the steep pull back into the support there. Had it been more gentle/gradual correction into support, we might look to long, but it was such a steep correction, i would say its bearish for me.
Here on the chart I hopefully highlight some areas where someone might go long once more.
Also on the chart, Im looking at the overhead resistance. Targets. I can envision the formation of an inverse head and shoulders here with time at this resistance 1.10.
(The chap whos in the trade that is under water, might get lucky and we might finish this rally to the overhead resistance, target area. Or they might get lucky in the fact that we only correct slight more to the 0.86 area before continuing up) (Either way, Id be selling @ 1.10)
Final thought on cutting the trade loose...even if you cut it loose, and then after letting price action take its course, you re-enter in the same place, then so be it, but at least youve protected your capital and accounted for the option that it might really take a hit.