This is a Medium-Long term trade setup based purely from analyzing price structure, trends, and patterns. This setup may take a few weeks to be ready for active trading. The trade assessments have been taken from using the 1W charts. The trade decision/entry point will be produced using the 1D chart and only the 1W chart if I see nothing blatantly obvious on the 1D. The length of the active trade could possibly last a couple months.
There is a decent chance that price will breach through the marked resistance and form a support. This is because you can see a clear bullish uptrend starting from late December of 2016. This tells me that the market sentiment from that point had shifted to create a steady trend with clean HH's and HL's.
With these two candles we see a clean bullish rejection candle. It would be reasonable to expect a bullish movement afterwards but instead we are currently seeing large bearish movement taking out the low of the previous candle. I will keep an eye on this movement, but it very well could simply be a false breakout occurring. We will know for sure in the next couple of days.
There is a decent chance that price will breach through the marked resistance and form a support. This is because you can see a clear bullish uptrend starting from late December of 2016. This tells me that the market sentiment from that point had shifted to create a steady trend with clean HH's and HL's.
With these two candles we see a clean bullish rejection candle. It would be reasonable to expect a bullish movement afterwards but instead we are currently seeing large bearish movement taking out the low of the previous candle. I will keep an eye on this movement, but it very well could simply be a false breakout occurring. We will know for sure in the next couple of days.