LONG LUNA approaching untested demand zone and H&S complete
Updated
Background:
LUNA confirmed a H&S pattern on 21 Jan. with a failed reclaim in the following candles. Target when measured by percentage is $37.74. Target has confluence with a 3D demand zone which preceded an impulse move on 28 Nov.
Strategy:
1st long entry at start of demand zone ~$45.06 with a target at 1D supply & minor line of resistance ~$62.78. SL below 3D demand zone
2nd long entry at H&S target ~$37.74 confluence with bottom of 3D demand, target Jan.27 low. SL below mid-Oct. lows
R/R 2.24 and 4.23 respectively
Invalidation Scenarios:
Daily close above 23 Jan high followed by a higher low above current local lows suggesting a change in market structure
LUNA confirmed a H&S pattern on 21 Jan. with a failed reclaim in the following candles. Target when measured by percentage is $37.74. Target has confluence with a 3D demand zone which preceded an impulse move on 28 Nov.
Strategy:
1st long entry at start of demand zone ~$45.06 with a target at 1D supply & minor line of resistance ~$62.78. SL below 3D demand zone
2nd long entry at H&S target ~$37.74 confluence with bottom of 3D demand, target Jan.27 low. SL below mid-Oct. lows
R/R 2.24 and 4.23 respectively
Invalidation Scenarios:
Daily close above 23 Jan high followed by a higher low above current local lows suggesting a change in market structure
Comment
Market closed ~$50.75 at ~0.75. May regret later, but not liking the LTF PA with ES1 rejecting off the Fib. golden pocket (measured from ATH to recent local low). I'm approaching all longs with caution until proven otherwise on HTFsLooking to re-enter if we sweep the lows at $44.17 and $37.74 with a tight SL below the demand zone
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