Pattern - Double top formed on 4H chart, followed by a relatively strong pullback and price trading sideway in a narrow range (within 142.x143.x)- forming pole and a bear flag. Another point to note of is the continual lower highs within the rectangle region, indicating bull's successive failed attempts to reach/test the previous high at 145-146. - If history were to learn from, we should take this as a signal for another sharp retracement (refer to previous rectangles) - taking strong support at where the bull first gained momentum in the current uptrend and resistance at top of the bear flag. ---> Support: MA20, 140 (psychological point); 138.x (fib), 135 then 130 (fib retrace, and where bull first took over) ---> Resistance: 144.x and 145.x
Indicator - Stoch oscillator: prevailing trend has been downward - MACD: downtrend -- confirming bearish in the 4H timeframe - BB: MA20 providing strong support, currently in squeeze, px awaiting strong movement
- Importantly: stoch oscillator on 1D frame is reaching to the overbought region and seems poised for a death cross and MACD's closing up gap. Safe to note that Stoch usually crosses before MACD within 1-2 days, which will confirm trend.
- Caveat: If you're conservative, wait until px breaks below MA20, or out of the bull flag to confirm prevailing trend.