Let's look at the daily chart
and try to spot possible price movements and entry levels. After falling from the historical high, price bounced from 14.00 support level
. The market could not break 14.00 level 2 times and we can consider this level as a strong support. Based on the previous 2 highs we can draw a downtrend line. This resistance line is a barrier for the market and an upward movement. We have 2 possible variants of further price movements in this zone. The market will try to break the downtrend line and confirm the upward movement. Or the market will drop to the uptrend line 1. We don't know now which variant will be realized. That's why we must be ready to both variants. If the market drops to the important zone formed by the uptrend line 1 and 14.00 support level
, we'll have to watch for price action closely. If the market can drop below 14.00 level, we'll see downward movement to the uptrend line 2. This support line will be able to stop and reverse price and give us a new buy signal. The same goes about the uptrend line 3. But what if price breaks the downtrend line? We'll have a confirmation for possible upward movement. It will be buy opportunity based on a breakout signal. We'll open long trades above the downtrend line with stop orders below the uptrend line 1 and profit targets at 20.00 resistance level
. This variant of price movement seems more realistic than price falling. So, let's wait for new trading opportunity.