Analysis
Market Analysis:
Yesterday's Trade:
My sell from the 2530 level worked out exactly as anticipated. The price action respected the resistance zone beautifully, leading to a significant decline that provided excellent profit opportunities.
Analysis from Two Zones:
1. Zone 1: 2530 (Resistance)
- This was a key resistance level where I anticipated strong selling pressure. The market had tested this zone multiple times in the past, showing clear signs of rejection each time. Yesterday, as the price approached 2530, the momentum began to slow down, indicating a potential reversal. The decision to place a sell order here was based on the confluence of previous price rejections and weakening bullish momentum. The market reacted strongly to this level, resulting in a sharp decline.
2. Zone 2: (Support Zone)
- Looking ahead, I'm focusing on a key support zone around 2480] This level has historically acted as a solid support, providing a floor for price action. If the market tests this zone, I'll be watching for potential buying opportunities, especially if there are signs of exhaustion in the selling momentum or bullish reversal patterns. However, a break below this zone could indicate further downside, and I'd consider adjusting my strategy accordingly.
Conclusion:
The market is currently in a decisive phase, having respected the 2530 resistance level. Moving forward, I'll be monitoring the support zone closely to see if it holds or if the selling momentum continues. My approach will be to adapt based on the price action around these critical levels.
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