FOMC thoughts, plans and levels.
We head into the FOMC at pivotal levels. This may be one of the more important FOMCs.
Basic trend correction rules dictate a downtrend should be making a high around the red area.
Supporting this as a resistance/turning level, we have a local version of the same pattern.
I think this level is an important breakout level. I’m short from the big inflection points and I have buy stops above the last high to long a breakout. Marked in blue are bull break levels/targets and in red bear break levels/targets. I think whatever comes of out of this zone will produce a strong move.
The case for the short here is good, but potential for pain above the last highs is extremely high. It’s not a time to be stubborn with shorts if it goes against.
Now let’s plan levels where we may make trades after a strong initial news move. We’re looking at levels we either want to fade moves, or breakout levels where we’d want to take trend continuation trades.
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