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Originally Posted by Summerset
at 5530, we will contemplate to re-long or short as momentum unfolds, & the resistance at the diagonal's top shows strenght / weakness.
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Yr Welcome El Grande.
To assess feasibility in continuation of Holding the position, see attached charts below.
Eurodollar-c, is the 1hr chart, and clearly shows that we have reached the top of the current diagonal. However, this time we have a 2nd buy signal on the hourly, were price has broken above the upper median of the down trending fork marking the 0-1 swing. Note too that at (1) we had negative divergence, were as at (2) price & momentum are in Gear.
So long as we oscillate next week around the central blue median, but do not fall back into the Red fork, we expect to successfully break out of the diagonal, and will hold position keeping stops on 4hr candle close below the Ema-5 based on low of the 4hr close. (This is shown in the Eurodollar-b chart).
Eurodollar-b chart is the 4hr frame, and shows that the buy signal spoken off in the past post has now materialized. Sustaining positive momentum will only be confirmed by break above the central median of the blue fork shown.
finally, on the
Eurodollar daily chart, we can see why we can expect an extended correction upwards into 5650-5730.
Here, the central median of the red fork is correcting, and just like with price, were a broken support becomes a resistance, the absolutely minimum correction will be up to the 38.2% AR line shown, to test the past broken support. This will take price to test the broken support at 5650 (marked S), with spikes into 5730 (marked R).
We therefore recommend to liquidate at 5650.
Profitable Trading