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This is the kind of demand zone I'm very comfortable to touch trade. Uptrending market, very clear consolidation right below a resistance level and a strong breakout. Broken supply becomes demand. When price returns to this level, the chance of it holding is high. As of now the reward risk of this setup is almost 3:1. My only concern is that price is rather high up on the curve, and arguably it is at a funky looking supply zone so we don't know how much supply will kick in. I will definitely place a buy limit at the zone, and will only pull it if I don't like the way price is approaching the zone. By this I mean if price starts consolidating and basing just above our zone, I'll pass on the trade. This is because the base will act as a supply zone, that in turn will be a major trouble area for our trade as well as greatly diminish the RR of our setup.
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