Current Analysis:
1D Chart: The price is approaching a previous resistance level around 2,470-2,475, which also aligns with the 0.618 Fibonacci retracement level.
15-Minute Chart: The price has shown a bearish break of structure (BOS) around the 2,465 level after a rally, indicating potential exhaustion and a possible pullback or reversal.
Major Trend:
On the daily timeframe, the trend is upward, as the price has been making higher highs and higher lows. However, the proximity to a key resistance level suggests caution as a retracement could occur.
Order Type:
Sell Limit Order (considering the potential for a pullback from the resistance).
Place a Sell Limit Order at 2,470 (just below the key resistance and the 0.618 Fibonacci level).
Stop Loss:
Place the stop loss slightly above the recent high at 2,480.
This level is chosen to give the trade room to play out while protecting against a breakout to new highs.
Take Profit:
Set your take profit target at 2,450. This level is above the next support level and offers a favorable risk-reward ratio of 2:1.
Risk Management:
If the trade goes in your favor and breaks below 2,465, consider moving the stop loss to breakeven to lock in profits and reduce risk.
Trailing Stop:
Once the price reaches 2,460, move your stop loss to 2,465 to lock in profits.
Continue trailing the stop by 5 points for every 10-point movement in your favor.
Rationale:
The setup aligns with the expectation of a potential retracement from the resistance level on the daily chart.
1D Chart: The price is approaching a previous resistance level around 2,470-2,475, which also aligns with the 0.618 Fibonacci retracement level.
15-Minute Chart: The price has shown a bearish break of structure (BOS) around the 2,465 level after a rally, indicating potential exhaustion and a possible pullback or reversal.
Major Trend:
On the daily timeframe, the trend is upward, as the price has been making higher highs and higher lows. However, the proximity to a key resistance level suggests caution as a retracement could occur.
Order Type:
Sell Limit Order (considering the potential for a pullback from the resistance).
Place a Sell Limit Order at 2,470 (just below the key resistance and the 0.618 Fibonacci level).
Stop Loss:
Place the stop loss slightly above the recent high at 2,480.
This level is chosen to give the trade room to play out while protecting against a breakout to new highs.
Take Profit:
Set your take profit target at 2,450. This level is above the next support level and offers a favorable risk-reward ratio of 2:1.
Risk Management:
If the trade goes in your favor and breaks below 2,465, consider moving the stop loss to breakeven to lock in profits and reduce risk.
Trailing Stop:
Once the price reaches 2,460, move your stop loss to 2,465 to lock in profits.
Continue trailing the stop by 5 points for every 10-point movement in your favor.
Rationale:
The setup aligns with the expectation of a potential retracement from the resistance level on the daily chart.
Note
Trade Active
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.