As we can see when we look back at other impulses and retracements, the market is in a downtrend. More importantly, however, the market tends to use the most recent area of broken support as new resistance.
We can trade these levels as a trade continuation trade by shorting the market when it pulls back up to the most recent broken support level. The entry may be based on bullish weakness (indicating the end of the retracement), bearish candlestick patterns or, in this case, strong price rejection at the level in question.
I have placed my stop loss above the most recent highs, and the profit target is above the most recent level of support.
We can trade these levels as a trade continuation trade by shorting the market when it pulls back up to the most recent broken support level. The entry may be based on bullish weakness (indicating the end of the retracement), bearish candlestick patterns or, in this case, strong price rejection at the level in question.
I have placed my stop loss above the most recent highs, and the profit target is above the most recent level of support.