$CLO Short Setup Trading the Rejection Zone
$CLO is currently trading inside a clear supply / rejection area, where upside momentum is starting to stall. Price structure suggests this move is corrective rather than impulsive.
Trade idea:
• Direction: Short
• Entry zone (DCA): 0.7150 – 0.7600
• Invalidation: 4H close above 0.80
• Targets:
• TP1: 0.60
• TP2: 0.50
Why this setup makes sense:
• Price is approaching a prior distribution zone
• Upside follow-through is weak, indicating potential exhaustion
• Risk is clearly defined with invalidation above 0.80
As long as price remains below the invalidation level, this favors a mean reversion move toward lower demand zones.
No need to rush entries let price come into your levels and manage risk accordingly.
NFA | DYOR
