The last wave up finally gave us a retrace. I want to buy this on first major support around 77xx as per previous chart.
Here you can see it falls right on the 618 retracement fib so I am looking to scale into another long position around the 618 with a stop (as always) just under the 786 fib.
As you can see the last wave found resistance around the 786 fib level so if that level is broken to the downside it would invalidate our long idea and we must get out of the trade. This is why we use the stop there.
I expect this level top support the price should it get tested here because the swing highs in June also found major resistance there which we now have broken. Hence I would expect the level to provide support now coming into it.
Initial target for this buy should be just before the 0.382 fib level where you can take profit on half of the position and set the remainder to stop @ break even. If we make higher highs from there you can raise the stop with the higher lows.
Here you can see it falls right on the 618 retracement fib so I am looking to scale into another long position around the 618 with a stop (as always) just under the 786 fib.
As you can see the last wave found resistance around the 786 fib level so if that level is broken to the downside it would invalidate our long idea and we must get out of the trade. This is why we use the stop there.
I expect this level top support the price should it get tested here because the swing highs in June also found major resistance there which we now have broken. Hence I would expect the level to provide support now coming into it.
Initial target for this buy should be just before the 0.382 fib level where you can take profit on half of the position and set the remainder to stop @ break even. If we make higher highs from there you can raise the stop with the higher lows.
