HD to retrace before going down further to 240-250 levelThis is a HD's daily chart.
Had a false breakout, and it is now retracing. Price also bounce of 50MA on the Weekly chart.
Looking to short it when price reaches 270 level. It should also coincide with the 20/50 MAs. Stoch RSI should also reach overbought (80) level.
If price continues to trend higher, then it might go back to 280-285 level i.e. the high of the range or where the trend line meets.
if shorting at 270 level is successful, then target profits are 250 & 240. If not, then wait for price reversal pattern at a lower time frame. I prfer the 1H chart.
280, 285 and 290 are 3 levels to look at for price reversal pattern at 1H
But if price only reverse at 285 or 290 levels, then target profits are the low of the range i.e. 260 level.
If you manage it right, risk-to-reward should still be in your favor.
If you have any symbol that you'd like me to analyze, feel free to drop a comment.
Thanks!
