G’day Surfers – hope all you eligible bachelors have taken cover & playing it safe on this once every four years day!!
What a nice position to be in as the new trading day begins – free trading on Swing & Relax, with the opportunity to bag some pips risk free, if price action can break loose of the strong resistance it’s finding at our DCZ (Daily Critical Zone), Resistance Trendline & DR-1. On top of that lot, the market has also formed an easy to see double top. Add to that scenario an open gap some 300pips to the South & MP almost a further 200pips adrift, untested DP below us – need I say more??? It would be impossible for me to go long without some pullback. How fortunate we are, to have the opportunity to capitalise on the breakout North (should it occur) for FREE – NO RISK at all.
So, for all the reasons I mentioned, it will come as no surprise to you that I have a bearish sentiment short term but guess what – it’s almost impossible for me to short the market either – why? Well there are certainly less reasons than going long BUT each is enough to keep my funds safe in my account – for now. We are in a bullish channel, above our DCZ, Resistance Trendline and DP. Until we see a lower high and price action confirms it wants to go south by first breaking and then re-testing the obstacles I’ve listed, we must wait and watch. This could occur however, with a break of our resistance trendline, retest of that area from below, nice master candle and VERY SMALL stake short targeting untested DP as TP1. My preferred and much safer option would be to let price action come to the new support trendline, testing DP on the way and giving us a nice StP setup for a trade in either direction.
So two hotspots but the best setup will come off #2, if price action comes to meet us there. If not, it’s happy days with Swing & Relax on the stairway to heaven.
Good surfing all.
Geoff | Certified SurfingThePips Trader