Market Context:
Market Structure:
A clear Break of Structure (BOS) to the downside occurred, sweeping sell-side liquidity below $190.
The price is now trading in a Fair Value Gap (FVG), a common area where demand often re-enters the market.
Key Levels:
Support Zone: $185.79–$189.31, the FVG and demand zone, where buyers may step in.
Resistance Levels:
$209.09: First resistance and minor supply zone.
$212.73: A significant supply level and previous breakdown point.
$263.80: Ultimate bullish target if momentum sustains.
Indicators:
The price is below the EMA cluster, suggesting oversold conditions.
The imbalance (FVG) provides a confluence area for long entries with reduced downside risk.
Trade Plan:
Entry:
Look for entries around $189–$193, ideally after bullish confirmation (e.g., strong bullish candles or wicks rejecting the FVG).
Stop Loss:
Place the stop loss slightly below $185.79 to account for potential liquidity grabs while minimizing risk.
Take Profits:
TP1: $209.09 – Close to the EMA and minor resistance.
TP2: $212.73 – Significant supply zone and previous structural high.
TP3 (Stretch Target): $263.80 – The upper range and major supply level.
Risk-Reward Analysis:
Entry near $190, SL at $185, and TP2 at $212 provides a 4:1 Risk-to-Reward Ratio.
Reaching TP3 would significantly increase the reward potential.
Key Notes:
Confirmation:
Watch for reversal candlestick patterns or increased volume near the FVG.
A break and hold above $197 (current resistance) will signal a stronger bullish case.
Partial Profits:
Take partial profits at TP1 to secure gains, then trail the stop loss to breakeven for remaining positions.
Invalidation:
A clean break below $185 invalidates this setup and could lead to further downside.