AUDJPY (Daily) SHORT IDEA: Consolidation on the MAIN RESISTANCE
POTENZIAL PROFIT: UP TO 350 PIPS
TECHNICAL ANALYSIS:
-Since the end of March 2020, the market started a strong uptrend, breaking the main support zone with strong momentum but rejected from a secondary S/R level zone at about 76.949.
The price got a small correction, bounced on the main support zone and continued the previous uptrend, reaching the main resistance level. (The constant increasing of the volatility and momentum were a clear sing of the market's strenght).
-On the 1st of September the price reached an important strong resistance level at about 78.478, inverting the trend; (The harami bearish candlestick pattern confirmed the inversion).
The market started then a strong downtrend until it reached again the main support level that rejected the price one more time.
-The price started a new uptrend while it was in a really high volatility period, reaching the main resistance level.
CONCLUSION:
The price actually reached the main resistance level, it just got a small consolidation phase. Even if the price seems to follow an uptrend, I believe that this strong weekly resistance could invert the trend (because it happened several time in the past).
The price action is showing few signs of weakness, a possible double top pattern could definitely invert the market.
Before to open any position I'll wait the price breaking the secondary S/R level.
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Trade Safe,
Gianni
TECHNICAL ANALYSIS:
-Since the end of March 2020, the market started a strong uptrend, breaking the main support zone with strong momentum but rejected from a secondary S/R level zone at about 76.949.
The price got a small correction, bounced on the main support zone and continued the previous uptrend, reaching the main resistance level. (The constant increasing of the volatility and momentum were a clear sing of the market's strenght).
-On the 1st of September the price reached an important strong resistance level at about 78.478, inverting the trend; (The harami bearish candlestick pattern confirmed the inversion).
The market started then a strong downtrend until it reached again the main support level that rejected the price one more time.
-The price started a new uptrend while it was in a really high volatility period, reaching the main resistance level.
CONCLUSION:
The price actually reached the main resistance level, it just got a small consolidation phase. Even if the price seems to follow an uptrend, I believe that this strong weekly resistance could invert the trend (because it happened several time in the past).
The price action is showing few signs of weakness, a possible double top pattern could definitely invert the market.
Before to open any position I'll wait the price breaking the secondary S/R level.
If you enjoy my FREE Technical Analysis, let me know that with a big LIKE, I'll be so glad!
Have you got some similar or interesting idea? Feel free to leave a comment below sharing your idea!
Are you interested getting more FREE Technical Analysis like this? SUBSCRIBE my channel and you won't miss anything!
Trade Safe,
Gianni
