Trading Strategy Update: Key Levels to Watch After Recent Pivot Top
On 27 September, the market made a significant pivot top, marking a potential shift in sentiment and providing traders with crucial price levels to monitor. As we navigate this new phase, the current market dynamics suggest taking a more structured approach to entering long or short positions based on key breakout levels.
Key Levels to Monitor:
Long Trade Setup: If the price breaks above 66,500, it could indicate renewed bullish momentum. In this scenario, traders should look for long opportunities, as a break above this level could signal that the market is attempting to establish a higher high and resume the uptrend.
Short Trade Setup: On the flip side, a break below 64,500 would indicate bearish sentiment, making it a viable entry for short trades. This would suggest the market is losing strength, with sellers taking control and pushing prices lower, potentially targeting further support levels.
Why These Levels Matter:
The 66,500 resistance acts as a key psychological barrier that, if breached, could lead to a surge in buying activity. This would be the level to watch for those anticipating a bullish breakout.
On the downside, the 64,500 support is crucial. If the market fails to hold this level, it could accelerate downward pressure, allowing traders to capitalize on the ensuing bearish momentum.
Conclusion:
For now, the market remains at a crossroads. Traders should remain patient and disciplined, entering long positions only after the price breaks above 66,500 or shorting if it falls below 64,500. Staying within these parameters will help mitigate risk and ensure you are trading in line with the prevailing trend.
Remember, always use appropriate risk management tools, such as stop-losses, to protect your capital, and monitor the broader market environment for additional confirmation signals.