Wednesday, July 28, 2010

Still looking bullish...

Well, it took price awhile to get there but sure enough it did. Price has now tested 1106 (the low was 1103) and has done so in the look of a zigzag (abc-x-abc). While price can start it's wave 5 at the open tomorrow, we will likely see one more back test before the longs start to party. I would look for a reversal price action tomorrow in the neighborhood of the 786 retracement on what ever move up we get all the way down to 1102 area.

To recap the trade entry, I never got long. There was a technical buy signal as marked on the chart, but I let it go because I didn't like the price action that preceded it, so I was waiting on a push through the 34 SMA, which never happened.

As for tomorrow, I'll be watching for a reversal on the 1st backtest on the 5 min chart.

Best of luck!
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