TLM has been respecting an upward channel for weeks.
Market formed a head and shoulder and fell through to break the neckline(previous resistance turned support).
We can see a clear wedge forming on the Support Trendline.
I am 70% in for a Long position and 30% in for a short.
I have two things to bear in mind.
• Either the market breaks and retest the wedge to the downside and touch the key level on the HTF indicated before pushing back up
OR
• The market breaks and retests the wedge to the upside and head for the neckline and breaks further upwards.
All we have to do now is wait for the market to react and we will look for perfect entries on LTF.
The TP1 for a long position will be the neckline and for TP2 we will be looking at the zone in the right shoulder.
Market formed a head and shoulder and fell through to break the neckline(previous resistance turned support).
We can see a clear wedge forming on the Support Trendline.
I am 70% in for a Long position and 30% in for a short.
I have two things to bear in mind.
• Either the market breaks and retest the wedge to the downside and touch the key level on the HTF indicated before pushing back up
OR
• The market breaks and retests the wedge to the upside and head for the neckline and breaks further upwards.
All we have to do now is wait for the market to react and we will look for perfect entries on LTF.
The TP1 for a long position will be the neckline and for TP2 we will be looking at the zone in the right shoulder.
