May 5, 2016 – This trade was taken following the break retest pattern that formed at the former support level now acting as a resistance level. I discuss the importance of a level that has experienced a bounce. A level such as this becomes an area that investors are watching so they may reenter into the market. It doesn’t matter whether they are taking up long positions or short positions, what is important is that this is creating an area dense in market orders. We refer to these areas as being liquid and are where we watch for our patterns to form.