When planning, keep in mind that Wednesday is another “Fed Day” where additional volatile action could quickly develop.
We can see the broader structure as seen on the Daily Chart:
I drew the “Polarity Level” (1,770) with a blue horizontal trendline.
We’ll note the prevailing uptrend in price that has been threatened with a break and close under the 50 day EMA.
To play devil’s advocate, notice also the late August and mid-October instances where a similar thing occurred (break and close under the 50 day EMA) only to see buyers step in aggressively to trigger a ’short-squeeze’ event which continued the uptrend in motion.
In conjunction with other strategies you’re using, pay close attention to what happens this week – or today – with respect to the critical “Make or Break” 1,770 Price Polarity level.
This article is brought to you courtesy of Corey Rosenbloom from Afraid to Trade.