Main items we can see on the chart:
a) Take a look at the Weekly chart how the price reached a major resistance zone
b) On the 4hs chart, we can see that the price formed a Compression on that level
c) Currently, we had a breakout of the compression with a clear bearish movement
d) Now we can see a clear corrective structure composed by an ABC pattern
e) we expect that if the price breaks below the corrective structure, we expect a continuation of the bearish movement towards the next support zone at 27.40
f) We will take the risk of 1% on this trade, and our Risk Reward Ratio is 2.7 - We will keep moving our Stop in case the price keeps rising, and we will only keep the short trade with a risk-reward ratio higher than 1.5
Weekly Chart:
a) Take a look at the Weekly chart how the price reached a major resistance zone
b) On the 4hs chart, we can see that the price formed a Compression on that level
c) Currently, we had a breakout of the compression with a clear bearish movement
d) Now we can see a clear corrective structure composed by an ABC pattern
e) we expect that if the price breaks below the corrective structure, we expect a continuation of the bearish movement towards the next support zone at 27.40
f) We will take the risk of 1% on this trade, and our Risk Reward Ratio is 2.7 - We will keep moving our Stop in case the price keeps rising, and we will only keep the short trade with a risk-reward ratio higher than 1.5
Weekly Chart:
Comment:
We have modified our Stop loss at 40.70; our current Risk Reward Ratio is: 2,2
Comment:
The price keeps going up, for now, we will cancel our entry, and we will wait for reversal signs before setting orders again. If the price starts reversing, we will make an update on this same post with our exact entry level stop and take profit.
IF we are on a bearish scenario, we think this current corrective structure would be similar to the one you can see on February 12, 2020, to February 20, 2020.
IF we are on a bearish scenario, we think this current corrective structure would be similar to the one you can see on February 12, 2020, to February 20, 2020.
