A Wednesday Market Pullback to Support Target
Surprisingly, the market can actually trade lower!
Today saw a successful retracement swing – finally – toward the first target at the rising 20 day EMA.
What’s the level and what’s the play from here?
In an uptrend, price typically swings up to a new high (toward the upper Bollinger Band) and then swings down to form a higher low as buyers step in (and bounce the market) up away from rising trendlines or moving averages.
This has been the case through most of 2017 except for October when price defied gravity in an extended upswing without a pullback.
TODAY we’re finally seeing that pullback to the safety zone and rising 20 day EMA target.
What’s the plan from here?
Note the Green and Red Price Pathways for planning your next trade(s) within the uptrend.
A support bounce here just keeps us bullish in the impossibly rising bull market while a breakdown beneath t0day’s low target near 2,540 suggests a steeper pullback (look at the other examples in 2017) toward the rising 50 day EMA and lower Bollinger Band targets overlapping 2,520.
Stay safe!
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”