Short after trendline resistance and nasty gravestone doji
Updated
JMIA more than doubled within 13 days. That lead to an overbought RSI so I took it on the watchlist.
Today it broke the downward trendline which is formed since the last runup in August to the upside.
But above it formed a double top @17.04 and I took a short position @16.95.
Due to the following drop which I did not expect in this extend I already have a positive SL just above the downward trendline. If history repeats itself the SP will move back towards it and gets rejected.
My TP are the Fibbonacci 0.5 & 0.618. Both price levels also have a history of support and resistance.
Entry: 16.95
TP1: 12.4
TP2: 11.21
SL: 16.5
What a nasty gravestone doji on the daily!
Today it broke the downward trendline which is formed since the last runup in August to the upside.
But above it formed a double top @17.04 and I took a short position @16.95.
Due to the following drop which I did not expect in this extend I already have a positive SL just above the downward trendline. If history repeats itself the SP will move back towards it and gets rejected.
My TP are the Fibbonacci 0.5 & 0.618. Both price levels also have a history of support and resistance.
Entry: 16.95
TP1: 12.4
TP2: 11.21
SL: 16.5
What a nasty gravestone doji on the daily!
Trade closed: stop reached
BIG LEARNING: Do not get greedy when you are already up > 10%! Take profits in steps.Feels like a loose although closed green
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