Price is currently in phase 2 of a bearish run. Current price is interacting with the 0.382 FIB retracement level and also the 20MA. On lower timeframes we have price action indicating possible signs of reversal to the downside. A high test bar and a bullish continuation afterwards, this is highlighted above. Currently the market is oversold which further indicates a bear run coming soon.
I can see how price could continue to the upside but I am favouring a impulsive move to the downside.
Scenario 1:
Price rejects the daily level (also fib level) and starts the bearish move. I would like too see price push through the daily S1 Pivot and move onto the weekly level which is my target 1. I suspect price will either push through the weekly level and reach the daily s2 pivot or will bounce off of the weekly level, creating a small correction, then a further push to the downside.
Scenario 2:
Price continues the current momentum to the upside and heads towards the daily pivot and 50MA before another bear run.
I have placed a safe entry at 109.00 just in case the current price doesn't break the daily level. My target is the last lower low.
I can see how price could continue to the upside but I am favouring a impulsive move to the downside.
Scenario 1:
Price rejects the daily level (also fib level) and starts the bearish move. I would like too see price push through the daily S1 Pivot and move onto the weekly level which is my target 1. I suspect price will either push through the weekly level and reach the daily s2 pivot or will bounce off of the weekly level, creating a small correction, then a further push to the downside.
Scenario 2:
Price continues the current momentum to the upside and heads towards the daily pivot and 50MA before another bear run.
I have placed a safe entry at 109.00 just in case the current price doesn't break the daily level. My target is the last lower low.
Comment:
I have posted an update to this trade idea.
Trade closed: target reached