A man with a rope around his neck doesn’t always hang, but this is not a great place to be extra long over the weekend.
The x00 long signal yesterday was accompanied by positive afternoon price action going into the close:
The ellipse shows the 1:30 candle making a low followed by a strong upward reaction at 2:00. The low is pretty convincing and worth playing (providing you haven’t lost your shirt on the decline). The technical problem is finding a good entry. The three following candles show the range of prices that a long player would pay.
A trader would have to be pretty good to catch the 3:30 to 4:00 high and then buy the decline at 11:00 today near yesterday’s bottom. That’s definitely not me. Now the bottom looks more solid.
It is probably prudent to shed any extra size put on yesterday.
