UPDATE 9th March
NEW BUY STOP, second entry: Entry price 7200, stop loss 6900 and take profit left open.
Stop loss: 100 pips
3rd March: Afternoon team,
The current market sentiment is very mixed, however, we are preparing a long position on the ASX – The DAX (German Market) and the US market also looks pretty attractive for long trade setups. The recent rally higher is possibly the start of a 5 wave rally to the upside
ASX – Daily Chart
There are a couple of levels we need to be aware of. Wave 4 can not cross over the top of wave 1 at 6204. This is our bullish invalidation level. Any move beneath this level will suggest a top is in place and the market is heading a hell of a lot lower. Wave 4 has possibly set up a wave 4 bottom at 6755. This is our major support level which must hold in the short term.
The recent rally and pull back in the market is possibly the same structure that was set up back in November 2020.
Trade Setup: BUY STOP – entry price 7350, stop loss 6933 and take profit left open to run (targeting record highs).
Stop loss: 417 pips
We will be looking to build and add additional trades if this goes well at a later stage.