CADJPY dropped out of the daily sell zone ( DPP to DM3 ). Bulls tried to push it back up into the sell zone, but were rejected at the monthly M2. In terms of candlestick patterns, I saw a bearish engulfing candle with another bearish candle forming up, and I sold at 86.19 .
If the stock market rallies I will feel silly for having sold at the bottom. But I am near-term bearish on the stock market. I have set a wide stop … 150 points away. I will set my stop to break even should the opportunity arise.
My targets is the daily take profit zone between M1 and S2. But I might hold on if price action is bearish in this zone.