Bias remains bullish for the cable and fiber. The day started with the two trading in opposite directions. Cable shot up while fiber fell.
Because we had a bullish bias I was looking for a long trade in the fiber. For further confirmation I looked for USDx divergence.
The green line shows the fiber making the low while USDx refuses to make a higher high. So now I have confirmation and the next question becomes what level will it stop at?
The first question I asked was do we have any hard support lines drawn on the chart? The nearest level was at the 2330 level.
Second, where may stops be resting since this down swing seemed to be a stop run? At that time the weekly low was 2340.
For implied support the monthly pivot is 2337 and the weekly pivot at 2333. S2 was at 2332. Previous day's S1 was 2338.
Kill zone was the New York open. Price came down to 2326 bounced up to 2345 and came back down. I got in at 2335 as an OTE. Price came back down to 2325 and then moved up.
I was hoping this stop run was to end the week on an up note but instead price came back down the next day. I got out during London open this morning for 30 pips. Nice little 1:2 risk to reward ratio.
Price has retraced today and now I'm wondering if cable will get down to the 5600 figure for a possible long entry.
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