TRX about to go long after a nice short

23 Mei 2014

Looks like a Bullish Gartley Pattern is currently forming on the daily time frame of TRX.

My Fibonacci Ratio analysis:
The AB leg retraced nicely to the Fibonacci 61.8% retracement level of the XA leg.
The BC leg also retraced up to the Fibonacci 61.8% retracement level of the AB leg.
The Fibonacci 127.2% retracement of the BC leg falls right on top of the Fibonacci 78.6% retracement level of the XA leg
The 127.2% Fibonacci extension of the AB leg is 4 handles above the 78.6% retracement level of the XA leg.

All these factors point to a potential reversal zone around Point D.

Trade plan for this setup:
Place pending order to buy at point D
Stop loss is under fib 88,6 which I see as a secure bounce area
First Target is the 38.2% fib retracement level of the AD move around 2.27
Second Target is the 61.8% fib retracement level of the AD move around 2.47

Safe trading Ladies and Gents!
BLawrenceM