Many are predicting the eventual fall below the current level into the 7k area. I'm mostly in agreement, but not sure if the timing is yet here.
The movent in the current level has been drawing what seems like a head and shoulders. What's important here however is that TECHNICALLY the head did not yet completely form because it did not retrace back down to the neckline yet, until now. I'm getting a bit more confirmation that we have found temporary support at the current price zone around 8500-8700, consistent with the neckline level. If indeed this is indeed trying to draw a head and shoulders, we have what seems like a deformed and ugly head and a potential open opportunity for a quick swing up on the way to create another small head.
Ultimately I'm still bearish on the overall trend, however I'm watching for a momentum confirmation before closing any shorts to do a swing trade.
Shorts be wary!
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Just to clarify - I'm not saying there is a h&S. I'm saying it looks like it COULD draw one and if it seems like it would, it's an opportunity to do a quick swing. Again, my overall sentiment is still bearish.
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The small bear flag popped with new estimated target. Above idea is getting more unlikely but next 2 hours should show more momentum development as it is currently flat.[img][/img]
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Bear flag confirmed and target reached (almost anyway - I like to overshoot it to show maximum range). Potential 2nd target. It will need another bearish breakout for confirmation of the flag pattern. [img][/img]
babypips.com/learn/forex/head-and-shoulders