Priced reached our projected downside 1596 handle target yesterday morning by noontime, whereby a strong reversal rally began pushing price up to the upside target of 1623 – 25 zone by settlement. (Re-read prior day’s trade strategy). It’s certainly a great feeling to nail both price edges! The 1596 – 1600 zone also marks the maximum measured Wave 5 corrective pattern as well as completing the H&S Pattern we highlighted in previous posts. http://twitpic.com/cvoqyv/full
So with the completion of various corrective patterns, probabilities begin to favor the 1596 – 1600 zone as solid pullback support. Normally to confirm this zone a successful retest is called for, so we’ll be watching any testing process in coming days. Today is Non-Farm Payroll Report at 8:30am ET, so pre-market action is quiet.
IF prior day high gets penetrated, THEN 1625 – 1632 zone is in-play…There is multiple confluent levels within this zone so any could elicit a strong sell response. Pullback to 1608 – 1614 zone becomes important potential support. Any deeper price weakness beyond normal retracement will increase likelihood of recent low retest sooner than later and would be decidedly bearish.
I will identify my mistakes and learn from them. I am optimistic, realistic and honest. I will not make up stories about the good or bad things that occurred in the past or are happening now. I admit when something is not working. My optimism gives me faith and courage. I will not fall prey to blame and fear.