Big Lots Inc. Long positionMarket just finished Elliot wave 1 to 5 downwards, we just hit our buy zone, we can either entry now or wait for a pullback back to the entry zone to get better R/R ratio, but we might miss a trade since market might not pull back.
Indicators:
AROON: On a weekly chart it is still showing a bearish momentum, but indicators are slow to catch up and lag, so looking at daily timeframe we can already see lines closing in on each other and on 4h chart we can see that it already shows bullish momentum (Orange line above blue)
RSI: It was close to being oversold, and bounced off of our buy zone, we missed our first entry for a good r/r but we could still entry or wait for a retrace
Bollinger bands: We just bounced off of a top Bollinger band which might seem like we are going for a retrace to retest our buy zone.
On a higher timeframes 2/3 indicators show bearish momentum which seems most likely we are going for a retrace that's why our entry is there.
Entry: 33.38 At the top of buy zone
Invalidation: 30 (Just below buy zone)
Target: 60 (Near strong supply zone)
