MDLZ – Approaching Support

I use Fibonacci price clusters to both identify key support or resistance decisions…..AND to define my risk.  Let’s take a look at an example in $MDLZ ($30.75, up $0.09).

In this stock I have a few price decisions that are illustrated on the chart.  At this point, we are testing the first price cluster zone of support at the 30.43-30.66area.  Since support is currently holding, I can now look for a buy trigger that suggests it is worth placing a bet against the price cluster zone.

Fib cb mdlz

My risk on this trade can be defined below the low end of the cluster.  If it starts to play out, target 1 comes in at 33.54.  Target 2 comes in at 34.34.

I will consider myself wrong this trade if the cluster zone is taken out on the downside.  For more information about trigger entries, please refer to this document on my site.