Daily Outlook: Our primary trade from yesterday – long on a sustained break above 4200 – is still open and currently about 60 pips in the profit.
While we are currently long and the recent topside break of an aggressive falling trend resistance line has given us renewed hope on our long, our preferred strategy is actually a short at these levels. We’d like to close our long after a bit more of an upward thrust and then short a sustained break whatever new rising trend support line is generated by that upward movement. Because that sounds confusing even as we type it, we’ve shown what that could look like using a red line and arrow on the chart above.
Trading Idea: We are still currently long from yesterday’s primary trade with 4275 and 4300 still in our sights. However we will look to close-and-reverse this position on the next sustained break of the NEXT rising trend support line (example shown using red line on chart above). Our downside targets would be the opposite of our upside targets from yesterday (but will ultimately depend on where that downside break happens): 4275, 4245, 4220 and 4200.