Now, we had previously highlighted the following SPI200 range on the blog. Of course if you open up the chart now and take a look how that coiling triangle pattern broke out, it went straight to the top of the range, and immediately onto test higher resistance from there:
Daily resistance that you can see has held for now, printing a pretty obvious double top in the process.
I’ll let you zoom out a little further yourself to see the previous price action at this level back in 2015, but price is most definitely also pushing into a larger zone of interest in any case.
Taking another couple of steps down to the hourly, I’ve drawn a lower time frame level that we can possibly use to manage our risk around for tight risk:reward IF the higher time frame double top does in fact hold.
You could of course do this a number of ways so the important thing is waiting to see if the level holds and then making our play from there.
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Dane Williams – @VantageFX
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