CADJPY Rising Wedge| Daily S/R| 200DMA| Bearish Divergence
Evening Traders,
Second analysis for today, I will try to produce two pieces of content daily,
CADJPY – trading under Daily S/R in a bearish formation, a bearish retest is probable here.
Points to consider,
- Rising wedge (bearish pattern)
- Daily S/R (Resistance)
- 200 DMA (Confluence)
- Bearish Divergence (RSI & Stochastics)
CADJPY is trading in a rising wedge under technical resistance, this gives us a bearish bias on the market.
The Daily S/R is likely to be respected, as this is a bearish retest of the level.
The 200DMA is in confluence with the lower Daily S/R. Price is likely to come down for a retest of the structure.
There is a valid double bearish divergence on the oscillators. Indication of weakness is in the market, increasing probability of a bearish retest.
Overall, in my opinion, CADJPY is a valid short with risk defined above Daily S/R. Price action is to be used upon discretion/management of trade.
Hope this analysis help!
Thank you for following my work!
And remember,
“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas
Second analysis for today, I will try to produce two pieces of content daily,
CADJPY – trading under Daily S/R in a bearish formation, a bearish retest is probable here.
Points to consider,
- Rising wedge (bearish pattern)
- Daily S/R (Resistance)
- 200 DMA (Confluence)
- Bearish Divergence (RSI & Stochastics)
CADJPY is trading in a rising wedge under technical resistance, this gives us a bearish bias on the market.
The Daily S/R is likely to be respected, as this is a bearish retest of the level.
The 200DMA is in confluence with the lower Daily S/R. Price is likely to come down for a retest of the structure.
There is a valid double bearish divergence on the oscillators. Indication of weakness is in the market, increasing probability of a bearish retest.
Overall, in my opinion, CADJPY is a valid short with risk defined above Daily S/R. Price action is to be used upon discretion/management of trade.
Hope this analysis help!
Thank you for following my work!
And remember,
“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas
