After a big sell off that came at 18350 level down to 17000 level last week, we have seen good bounce back due to mag 7 earnings.
We are currently approaching the previous support level of 17800-17850 levels, which I expect to turn into resistance now. Coincidentally Fib 61.8 level is exactly in the same zone at around 17825. Will be looking for a short opportunity in the area on a smaller timeframe for 1-3 or 1-4 R/R
Factors to consider the trade:
1. Earlier demand zone, which may act as supply now.
2. Support turns to resistance
3. Fibonacci placement
The key to this trade is patience until we hit that level 17825, either today or most probably Monday morning session, then short based on smaller timeframe and a good setup. Mag 7 can be unpredictable so a tight stoploss is critical using one of the below setups.
I'd prefer a 1. bearish engulfing, 2. reverse hammer 3. ema break down
We are currently approaching the previous support level of 17800-17850 levels, which I expect to turn into resistance now. Coincidentally Fib 61.8 level is exactly in the same zone at around 17825. Will be looking for a short opportunity in the area on a smaller timeframe for 1-3 or 1-4 R/R
Factors to consider the trade:
1. Earlier demand zone, which may act as supply now.
2. Support turns to resistance
3. Fibonacci placement
The key to this trade is patience until we hit that level 17825, either today or most probably Monday morning session, then short based on smaller timeframe and a good setup. Mag 7 can be unpredictable so a tight stoploss is critical using one of the below setups.
I'd prefer a 1. bearish engulfing, 2. reverse hammer 3. ema break down