Following strong rise on Tuesday, price took a well needed time-out to catch it’s breath in prior session. Early opening strength could not hold as price retraced back into our expected support at 1812, then consolidated between 1812 – 1818.
Today is Cycle Day 3 and cycle targets have already been achieved which puts today session in an interesting quandary for both bulls and bears. Bulls need to continue to hold any pullback while bears will look for any hint of weakness to attack the short-side.
Today’s Trade Strategy will be to anticipate a bit more back n fill action, perhaps a bit lower to attract new buyers. Key Levels to watch today will be 3-Day Central Pivot Zone (3D CPZ) 1805 – 1808. Recall 1808 marked a “key” price point in Tuesday’s session. IF price cannot hold this zone, THEN 1800 – 1804 become the lower target zone.
On the upside, price will need to get back above 1812 which may become resistance on first attempt, followed by 1818 as stronger resistance. IF there is ample demand through this zone and successful conversion of 1818 level, THEN retest of highs becomes likely.
Stay Disciplined and Patient
I am at ease with controlled risk. I will risk and I will win. I am courageous. I will take a chance. I manage risk to my comfort level. Risk keeps me on my toes, keeps me alert and at the top of my game.