Hi traders!
Square has completed a 5-ways impulse move up, and we have shorted it at the end of wave 5 to capture a potential breakdown in case the Nasdaq falls.
If that does not happen, we will take profit and invert the position into a long. The green box is our long entry (LE) where price may reverse with high probability, however the other fib levels are also possible. A move above the green "Bullish confirmation" line will confirm our bias and we can start adding to our position.
Levels
We find the strongest volume support at the .382 fib.
Averages
The 200 MA also heads towards the $220 area, a MA that has been respected well before.
Waves
Look for a completion of the ABC correction with a wave C that consists of 5 smaller subwaves.
Invalidation
If price keeps dropping without any sign of reversal, we let our short run and take profit towards the double bottom, or speculate on a total breakdown below the red line for the most bearish scenario.
Happy trading!
Square has completed a 5-ways impulse move up, and we have shorted it at the end of wave 5 to capture a potential breakdown in case the Nasdaq falls.
If that does not happen, we will take profit and invert the position into a long. The green box is our long entry (LE) where price may reverse with high probability, however the other fib levels are also possible. A move above the green "Bullish confirmation" line will confirm our bias and we can start adding to our position.
Levels
We find the strongest volume support at the .382 fib.
Averages
The 200 MA also heads towards the $220 area, a MA that has been respected well before.
Waves
Look for a completion of the ABC correction with a wave C that consists of 5 smaller subwaves.
Invalidation
If price keeps dropping without any sign of reversal, we let our short run and take profit towards the double bottom, or speculate on a total breakdown below the red line for the most bearish scenario.
Happy trading!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.