Two attempts to break the .786 fib, as well as being trapped in a strong zone of resistance could produce a great trade opportunity. With the yearly pivot sitting below, I believe we will see a continuation down in the coming days/weeks.
We finally closed with a bearish engulfing candle on the daily chart. Dropping down to the 4hr we can see an ideal setup (although rarely happens). I would like to believe we will have enough momentum to break this 4hr structure low the first time around. TP1 is around the yearly pivot and TP2 is structure lows, we can then look for additional targets after a break and retest of that.
Trade closed: target reached:
Duration 20 days, 450 pip move from top to bottom. If the trade was taken at the Jan 19th daily close; a maximum drawdown of 60 pips would have been incurred.