- There's a potential formation of the (IH&S) pattern.
- Price hit a swing high and retraced (right shoulder formation).
- Price is testing the horizontal (S1) and the key zone (0.5 - 0.618 - 0.786).
- There's a relatively high concentration of buyers at this zone.
- The minor retracement at the right shoulder is resisted by the descending trendline resistance.
- Breakout above the descending trendline resistance could lead to the test of neckline resistance (complete formation of the pattern).
- Further breakout above the neckline resistance could be a confirmation.
BUY ENTRY ⬆️
- Breakout above the descending trendline resistance.
- Retest of the descending trendline resistance after the breakout.
- Horizontal (R1).
- Neckline resistance ( NR ).
SETUP INVALIDATION ❌
- Initial invalidation : breakdown below 0.786 level.
- Final invalidation : breakdown below previous swing low horizontal (S2).