Our considerations for a bottom in $TNA once 106.97 was taken was wrong, market tried but failed and retested 103.38-102.85 support area as seen here (link) and today’s action open a clear probability for a retest of 101.90 support, chart here (link) very close to previous 4.764 retrace from the following Chart:
We are not bullish or bearish about this market, we have maintained a successful but neutral approximation. So for tomorrow 101.90 is going to be the line we will be watching to add to our longs. Stops should be considered under 100.31.
Addendum, December 9th, update for $TNA
From 91.76 support TNA managed to climb 19% to yesterday’s highs at 108. We have had 108-114 as targets areas for about one month in our books and we have been trading the long side based on the micro patterns.
The question we ask now is, should we be chasing the last squiggle to 113.46 or 5% more in the upside? The answer depends, ideally we should get a pullback to 102.88-103.38 as seen here (link), in case we have this micro pullback, stop for any trade entered at 103 area should be 100.30 with potential target at 110.45-113.45 and this is a decent risk reward. In any other case we are reluctant to chase a 5% move to the upside, simply because if market starts to correct, standard retraces for support are 87.35-80.42 and this move has been so fast that from here to 98.76 there is only air to support a correction.For any trade chasing 113.46-114, hard stop should be 106.25
