I circled Thursday’s bar; it was an inside day and the narrowest of the previous four sessions. These are some of the primary conditions I look for when looking for potential breakout trades.In addition, Thursday’s low matched the low ofWednesday at 126-24.0; this was just over 126-23.4- the 61.8% Fibonacci retracement of the Feb. 27 to March 18 rally.Withe the breakout setup; we were looking for a breakout when Thursday’s low was broken.
You can see that the break of this level (126-24) led to a sharp selloff, which stopped us into a short sale and a quick move in our favor.I had a first profit target at the April 13 low of 125-18.0; this was a move of about 1-06, or $1187.50.The next profit target I was looking for was the trendline(red line); this was at 124-21.7, and wasn’t reached Friday.The low of the day was 125-00.0, this kind of “round number” support is common.
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