Price has been consolidating “coiling” within a relatively tight range with an upside skew past few sessions, with an expectation of upside resolution as long as 1916 “key marker” held firm. An early successful test of this support level in prior session setup the upside breakout through 1922 – 23 zone. Key question is whether this breakout can follow through by attracting new “fresh buyers”? Any retracement test of 1922 – 23 zone (breakout zone) will be critical to answering this question. Tomorrow is the all-important Employment Report so remain vigilant and disciplined with your trading.
Key breakout support zone is 1922- 23…Price needs to continue to hold above this zone for further upside…Prior Day High (1927.00) is also a “key marker” for the bulls to convert…IF successfully penetrated THEN upside price targets 1930, followed by 1933.25 – 1935.50 zone.
Initial support on pullback will be the breakout zone highlighted above, followed by the Three-Day Central Pivot Zone (1919 – 21)…Failure to hold these zones suggests a failed breakout with price potentially vulnerable to deeper price correction. Any violation of 1916 level confirms a breakout failure…Downside then would initially project 1910 – 12 zone with extremes measuring 1908 – 1905 zone.
Remain Focused on the Trading Process…Not the Outcome ALWAYS USE STOPS!
I take the long term view. I am willing to lose in the short term. I understand that losses are a necessary cost of doing business, like inventory to a merchant. Drawdowns are viewed as temporary. I realize that my wins and winning periods are part of the broad process. Each trade is but one in a string of trades. What is happening now is one piece of a much larger puzzle. Because of this I do not get overly euphoric or despondent.