Price is at a key longterm resistance area,
confirmed by confluence with Pivots
R1 and R2. A spinning top
is completing on daily Chart
and spinning tops ordinarily are considered signals for indecision. However in this case, it occurs at key resistance area
, there has been a tag of upper Bollinger Band
, there is bearish
divergence (more clearly seen by zooming down to 4h chart), and Connors RSI
(2) has exceeded 90 two days ago, which often is a strong confirming over bought signal. The four hour chart has failed to make a new high for the last 4 candles.
Finally, I don't claim to be Elliot Wave
proficient, but I always try and do a count as part of my analysis. I have labeled a count that provides added confidence that we are just starting correction wave C, usually the largest move in the correction pattern.
Risk / Reward depending on entry and exits, but absolute risk is 60-135 pips, Minimum reward is 86 pips (61.8 fib), 200 pips (P level), and 290 pips (S1 and 1.618 fib level)
Enter now or wait for a close below R1 or today's low of 1.01812.