Short sellers can get liquidated if the market spikes at open, creating momentum for long trades. Watch for a breakout above 218 after the confirming candle closes, then switch to a one-minute chart at market open to execute.
I will create some scenarios that are all rule based. The first scenario is that these sellers are going to get absorbed. If these sellers are short here, probably they are going to get liquidated here. If the price during market opening spike ups really hard, they are forced to close their position. Closing a sell will create more momentum long Watching how much they are pushing short makes me think that they are either closing long position from here, either they are getting some scalp pre market opening and price will get back to this level. 218 should to before skyrocketing. Long if we need to be conservative risk the only setup is breakout here. Test the level only when you have a closure of the candle. We go back to one minute so we get the real execution and the market now will prepare the setup for the market session Open.
