Prices Approaching Resistance, Sell On Strength!
Sell below 107.98. Stop Loss at 109.23. Take Profit at 105.89
Reason for the trading strategy:
Price is approaching our first major resistance at 107.98 (horizontal overlap resistance, 100% Fibonacci extension, 23.6%, 38.2% Fibonacci retracement). A strong reaction might occur below this level, pushing price down to our major support at 105.89 (horizontal overlap support, 61.8% Fibonacci retracement). A breakout below our intermediate support at 106.67 (horizontal overlap support, 38.2% Fibonacci retracement) might provide the bearish acceleration to our take profit level.
Stochastic (55,5,3) is approaching our major resistance, in line with the upside in price. A reaction off this level might be a good precursor for a potential drop in price.
Reason for the trading strategy:
Price is approaching our first major resistance at 107.98 (horizontal overlap resistance, 100% Fibonacci extension, 23.6%, 38.2% Fibonacci retracement). A strong reaction might occur below this level, pushing price down to our major support at 105.89 (horizontal overlap support, 61.8% Fibonacci retracement). A breakout below our intermediate support at 106.67 (horizontal overlap support, 38.2% Fibonacci retracement) might provide the bearish acceleration to our take profit level.
Stochastic (55,5,3) is approaching our major resistance, in line with the upside in price. A reaction off this level might be a good precursor for a potential drop in price.