Look beyond ordinary analysis
10 min chart:
The rally in Cable today was encouraging for the medium term outlook for a rise in wave ‘c’ of a zigzag correction.
Yesterday I mentioned that I had a limit order open and placed at the 12945 high.
That order got triggered and right now is open showing profit.
I call todays action encouraging for the reasons I mentioned yesterday.
The price moved above a previous support and resistance level which could now act as support again,
the rally was impulsive and has now crossed up above three previous daily highs of the last week.
and with a bit of luck, the rally might act to turn declining momentum to the downside into positive momentum to the upside.
It is of course too early to tell, but so far so good.
On the 10 minute chart you can see my stop is placed at 12926 which for the left hand shoulder of the inverted head and shoulders pattern.
It is also about as mush risk as I am willing to take on this trade.
even though the rally today was pretty convincing,
I will stick to my trading rule of thumb.
Question, verify and stay suspicious.
So I had questioned that a turning point was at hand, the price action today verified a minor change in direction, but I will stay suspicious on my own analysis!
because you can always be wrong, no matter how right you might think you are.
It is still hard to label the action in a solid five waves up on the 10 minute chart just yet
tomorrow might clarify that.
for tomorrow I will switch to trade management,
If the price keeps pushing upwards, I want to get that stop to a protective position asap.
then it will qualify as a good trade in my book. no capital lost!