So that’s another weekend over and it is already looking like we are going to have a pretty wild ride this week. Action over the weekend broke the 6000 level that we have highlighted repeatedly as being one to watch from a psychological relevance standpoint and – as thing stand – this level is holding up pretty nicely as support. Whether said support will remain in place is something that we’re going to have to wait and see about but, with any luck, we won’t see too much of a correction as and when one takes place.
Anyway, things are moving pretty fast so let’s get right to our analysis and figure out how we are going to tackle action during the early European session today.
As ever, take a quick look at the chart below before we get started so as to get an idea what’s on and where things stand right now. It’s a one-minute candlestick chart and it’s got our key range overlaid in green.
As the chart shows, the range we’ve got in our sights for the session right now comes in as defined by support to the downside at 6168 and resistance to the upside at 6229.We are going to go at price with our breakout strategy only today as, when things are moving as fast as they are today, trying to carve out something intrarange can be tough and – by proxy – a little bit risky.
So, our two trades are as follows:
- We are going to try and jump into a long trade if we see a close above resistance. A target of 6260 works well, with a stop at 6215 working to define risk on the trade.
- Looking the other way, if we get a close below support, we’ll look at jumping in short towards 6130. A stop at 6180 looks good.
Let’s see how things play out.
Charts courtesy of Trading View