It's an uptrend, so what does this mean? Shouldn't a trend continue? So why is this risky? Nearby resistance/support? But it has a high possibility to reach there no?
Well, all trading is risky. In this situation, you might run into an exhaustion situation. It's a momentum trade, so you expect the trend to continue. But often it doesn't. And when the trend is exhausted, you had better be prepared to get out, and quick. This trade was typical during the internet boom of the 90's. You chased the long, and got ready to sell, before everyone else did. The slightest hint of an exhaustion in trend or momentum, caused everyone to get out as soon as possible.
There is a tendency (though not seen every time) for prices falling from a high in an uptrend to fall even faster than they went up. This can mean you have to exit a long lower than you had planned. Its generally too late to enter an uptrend while it is suddenly getting steeper. If it is rising at a steady 30 or 45 or 60 degrees, that's just a trend, and it is not too late to get in.
1. Manage your psychological biases... 2. Think in terms of probability...trends probably will continue but not certain to do so! 3. Manage your risk
Thats something you'll do better if you ignore, you'll be surpirsed how long trends can go on for, picking tops and bottoms is a suckers game, joining trend and riding it is how to get rich.
Price makes a "thrust" away from an area, then a dip might happen, retracement, also called higher bottom as it failed to go lower, so out of this retracement is cheaper place to get in as risk is less as you know where the lows are. Buying late expands your risk if you putting protected stops below the lows. Buy as low as you can get in and sell as high as you can, risk is less when you know where the extremes are. Getting "rich" is based on knowledge, but for trending intraday way to go until you have knowledge or developed patterns that test out well to go counter.
Additional..... If you pick a top, it will pull back making you think your into a winner, then move upward fast, moving into a loss before giving you time to think, getting to trap you. Then it'll hit the sl look like a new top, create a ohhh no you don't, short worse price than sl, repeat, I did this last thursday ouchhhh. That's the play most newbies take then wonder why they keep losing.