As per previous post, descending resistance is still in play and looks like it's going nowhere fast:
To further affirm the thinking behind our short position, we also have a fully formed descending triangle:
The problem facing us however, is that there are several prospective points of entry. We have two distinct resistance lines, both of which have been tested with varying frequencies - see below with points of inflexion highlighted in blue and red respectively:
The danger here is that shorting at the nearest resistance (10008) with too tight a stop could be disastrous, as we are clipped only for the market to turnaround and head in our direction AFTER we are out of the position. Wait for the upper resistance (10084) exclusively however, and the market the inflexion point might arrive before we our designated entry.
We shall action two short positions then, price action depending. Half already filled at 10008 with s/l above 10105 and the other half will be actioned at 10084, price action permitting, again with s/l above 10105. As far as targets Flatbookers, stay nimble. 9800 is not out of the question by weekend, and longer term we think the DJIA may hit 9000 within the next couple of weeks!
Stay safe flatbookers!
"Most often, traders have four fears. There’s the fear of being wrong, the fear of losing money, the fear of missing out and the fear of leaving money on the table. I found that basically, those four fears accounted for probably 90% to 95% of the trading errors that we make. Let’s put it this way: If you can recognize opportunity, what’s going to prevent you from executing your trades properly? Your fear. Your fears immobilize you. Your fears distort your perception of market information in ways that don’t allow you to utilize what you know."
- MARK DOUGLAS
