Quote:
Originally Posted by Terri Belkas
Ouch, that's a sticky situation to be in. At this point, I'm not 100% confident that we'll see a large rebound to a level that will make your position profitable, especially if the pair breaks down below trendline support and 2.01.
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A agree with Terri. Support is pretty sturdy around 2.1 (an 18-month rising trendline and 200-day SMA), but any subsequent rebound has limited potential unless we have some major shift in positioning and/or there is a major risk event.
If you want to hold on to your trade at current levels, I would immediately put a stop loss on the position so that you do not incur an any more severe loss (perhaps below 2.01). If you are stopped their, you can reanalyze and see if it was a false break and get in at a better price for a rebound to a level that is more likely to be achievable (2.025-2.035) or you can flip your position if you think the break of that trendline is a major change in trend.
Don't forget to always put in a stop loss. Whether you put it on the trade as an order or you just keep it in mind, a stop is perhaps the most important rule in money management.
