Last Friday’s strong selling did not continue into Monday’s trade. Aside from some residual sellers, there was no new selling and as such trapped shorts and bargain hunter buyers pushed price back shy of 50% retracement level near 1640. Recall yesterday’s upside target was 1640 to 1644 zone.
Tuesday is day 3 of cycle and usually is bullish. Momentum from prior day may push price into that 1640 – 44 zone. The 3D CPZ is 1644 – 47. IF any rally attempt stalls, THEN price could aggressively reverse back to 1621 handle and if violated could continue liquidation down to 1602 – 08 zone which equates to a symmetrical AB = CD Pattern. Odds are about even for rally or reversal so stay nimble and flexible to two-sided trade action.
I am at peace with uncertainty. I know there is no such thing as a sure thing. I have no particular need to be right. I understand that being perfect has no place in trading. I am flexible. I am willing to change my mind. I am alert to scenario changes. I accept the information that tells me I am on the right track or on the wrong track.