We have a bearish harmonic pattern and a following double-top formation.
Following the 2618 strategy - we got a test of the .618 Fibonacci level of the double-top formation. Now we can expect a further downward movement.
Stochastic and RSI indicators are supporting bearish momentum.
The bearish harmonic pattern should also retrace to it's .618 Fibonacci level (8900$) which converges with the multiyear descending trendline (blue line) that was broken a few days ago! This trendline should be revisited and then we can expect a resumption of a bullish trend.
I will place my Stop-loss just above the .618 double-top level which is 9730$.
Take-profit: 8900 $
The risk/reward ration for this idea is around 1.5
Gl & HF ;)
Following the 2618 strategy - we got a test of the .618 Fibonacci level of the double-top formation. Now we can expect a further downward movement.
Stochastic and RSI indicators are supporting bearish momentum.
The bearish harmonic pattern should also retrace to it's .618 Fibonacci level (8900$) which converges with the multiyear descending trendline (blue line) that was broken a few days ago! This trendline should be revisited and then we can expect a resumption of a bullish trend.
I will place my Stop-loss just above the .618 double-top level which is 9730$.
Take-profit: 8900 $
The risk/reward ration for this idea is around 1.5
Gl & HF ;)
Trade closed: stop reached
Comment:
Looks like the Harmonic pattern worked out eventually :)