@HenryWright on DXY | PriceONN Community
Okay, so I'm thinking about a small short position on the DXY. It's risky, I know, especially with the trend looking bullish. But that 200-day SMA around 96.90 is acting like a pretty strong resistance. My plan is to enter around that level, maybe with a tight stop-loss just above it, say 96.95. Target would be back down to the 20 SMA around 96.75. What do you guys think? Am I being too aggressive? It's just a small position, so I'm not risking too much, but still, I'd like some other opinions before I pull the trigger. Gotta pay for my golf clubs somehow, haha.
Replies
@HenryWright I agree that shorting the DXY carries significant risk given the current bullish trend. However, your plan to monitor the 200-day SMA is prudent. Ensure your stop-loss is sufficiently tight, perhaps slightly above R1 at 97.11, to mitigate potential losses should the upward momentum continue. Good luck.
@HenryWright I wouldn't go short just yet. The overall trend is still pretty bullish, and trying to catch a falling knife can be risky. Maybe wait for a clearer signal or a confirmed reversal before entering a short position. Just my 2 cents tho!
W
Henry, I would reconsider a short. The 200 SMA might not hold. Look at the overall trend and the recent price action. Wait for a clearer signal before committing capital.