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NG - produced a nice bounce of a strong confluence of fibs
As I expected a strong confluence formed by 85.4% retracement fib and 176.4% extension fib of subwave ( a ) down produced a strong support level.
That confluence level was at 2.235
However, NG spiked under that level and made the final low at 2.207
That is a very important aspect of support and resistance levels. You can get a perfect confluence of fibs but that does not mean the market will stop right at that level!
Always be prepared mentally and financially for such momentarily spikes.
You may not be quick enough to add to your position when such a spike happens. But you should not panic when price quickly drops under your perfect looking level of support or gaps up above your carefully calculated level of resistance.
NG - 120 min chart updated at 9-15 AM on 10-7-2019
If I zoom-in to that 120 min chart you will see that we did not get any close on 2 hour chart under that level:
NG - 120 min zoomed-in chart updated at 9-15 AM on 10-7-2019
Now lets look at the action of the low on 15 min chart below. We have got an a-b-c up structure off the last low. And when we get such a structure after a strong drop we always face dilemma whether to count it as wave i up off the final low, or a corrective wave iv up before another plunge to a lower low in the final micro wave v down of the wave ( c ) of B down.
If that drop extends lower and gets into the Green Target box it may make sense to go long with a stop under 2.235.
NG - 15 min chart updated at 9-15 AM on 10-7-2019
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