$TAO | Trade Plan
Here’s how I’m managing the trade from here.
I entered on the breakout around $300 and rode the move up roughly 25% into $375 within a day, where I took some profits into the major supply zone I had marked out beforehand.
Now price is back retesting the breakout area, and this is the point where the trade either confirms strength or starts to weaken.
Earlier in the week, I mentioned I wanted to see volume expand off support and that played out. But what concerns me now is that price has retraced the entire move back to support without much aggressive selling. That’s a bit of a warning. It suggests the breakout had momentum, but not enough follow-through to hold higher and separate from the level.
So my approach here is straightforward: I stay in the trade as long as support holds.
Since I’ve already secured profits, the rest of the position is basically being managed around breakeven.
If price pushes up again, I’ll look to take more off around the $330 area, which has been acting as local resistance and has already rejected price a couple of times.
I’m also keeping a close eye on the 4H 12EMA it’s been capping every rally so far, so bulls need to reclaim that level to regain short-term control.
On the higher timeframe, the daily 12EMA is still holding as support underneath, which adds some confluence to this zone.
So overall, the plan is simple: hold while support holds, respect $330 as resistance, and if both horizontal support and the daily 12EMA break, there’s no reason to stay in the trade.