Mr. Market has been on such a torrid buying pace recently without even taking a break…We think it’s time for a well deserved “breather”. Price remains above the median line of a well defined sixty-minute up channel, with key support at 1868 – 70 zone. This level also represents a key PTG Metric…”5-Day Max Upper Value Area Average”. This zone will need to be broken to shift the current bullish sentiment.
Price / Volume evidence is building in the 1880 – 83 zone for short-term resistance. We’ll be watching this zone closely this week for increasing supply development. IF price can exceed this zone and convert into upper support, THEN this favors further upside targeting 1888 – 1892 zone.
Violation of the key 1868 – 70 zone suggests buyers recent appetite is satisfied, which would result in prices retracing down to 1858 – 62 zone (Lower Channel)
Trade Strategy favors more back n fill action within ten-handle zone between 1870 – 1880. We will be buyers on the dips to key intra-day support, as well as opportunistic sellers near upper developing resistance boundaries.
Remain Disciplined and ALWAYS USE STOPS!
***Don’t forget our “Mentorship Drive” to help benefit the Wounder Warrior Project we highlighted in prior blog posting.
Click here to read about Mentorship Drive: http://polaristradinggroup.com/stay-the-course-2/
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.