In this post, we discussed setting up a potential short trade on the FKLI’s daily chart:
However, with the strong momentum that price has demonstrated in the past few days, the necessity has arisen for the box to be adjusted. Whilst it is relatively rare to have to change an expected turning zone for an instrument so drastically, this does occur when price action proves to be resilient. The result may be that a trade or two are missed, but it is preferable to having to take a few stops in succession.
The new Blue Box is in the 1820.16-1840.66 region, approximately. We shall be looking for small divergence and reversal candlesticks upon the activation of this region.
As always, I wish you good trading.
Head Trader Consultant