Monthly/Weekly
Daily
Price has formed a Head and Shoulders (H&S) formation which is a sign of bearish pressure or a possible move to the downside.
Remember on the higher timeframe, price has been consolidating, the H&S formation on the daily is a confirmation that price is ready to drop.
I am expecting price to make one more attempt to the upside before making the bearish move to the downside.
If you draw a Fibonacci from the beginning of the right shoulder to the blue support level where price reversed, you will notice that I am expecting price to make a final push near the 50.0-61.8 fib levels, which correlates with the area arrows I drew.
Here is where I'm expecting to enter a sell position.
- -Price is clearly in an overall bullish trend.
- But price appears to have become overextended, after a huge breakout (through the trend line) and has since been consolidating preparing to make a possible pullback/retracement.
Daily
Price has formed a Head and Shoulders (H&S) formation which is a sign of bearish pressure or a possible move to the downside.
Remember on the higher timeframe, price has been consolidating, the H&S formation on the daily is a confirmation that price is ready to drop.
I am expecting price to make one more attempt to the upside before making the bearish move to the downside.
If you draw a Fibonacci from the beginning of the right shoulder to the blue support level where price reversed, you will notice that I am expecting price to make a final push near the 50.0-61.8 fib levels, which correlates with the area arrows I drew.
Here is where I'm expecting to enter a sell position.
