The downsloping pitchfork in this chart is constructed with the help of the monthly TL3 (see the linked idea below). Together with the upsloping pitchfork which describes the W4 suggested in the monthly view, the picture seems bearish. It is also suggested in the monthly view that the red arrow might be the beginning of W5, which might be an ending diagonal. If it is so, it is likely that the trend turns bullish after it hits the LMLH of the upsloping pitchfork. The price had a NR7 right below the MLs with Stoch having a bullish crossover in the oversold zone. A breakout of this narrow range seems tradeable for either side, though a final decision is to be given in a lower time frame.
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NR7 breakout didn't happen as expected. But no worries, the sideways action has finally touched the downsloping UMLH and we have a nice huge red candle now. I believe this to be a bearish signal. Hourly view is needed to enter the trade.
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We sold it today as it hit the ML.
Trade closed: stop reached:
Let's see if the picture will turn bullish...
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My mistake. I couldn't realize that SL and put my S/L right above the UMLH. If I had realized it, I would have waited for the bearish breakout of the consolidation. So this also means there is an opportunity before us. If this downward action proves to be of impulsive character, I will wait for the pullback and buy the bearish breakout. If the price makes its way on the Northern part of the chart, on the other hand, that would make me wait more.
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