EJ Short Idea

Following the rally on EU, EJ has also shown a lot of bullishness the past week.

Towards the end of the week, we've seen signs of exaustion.

Signs of exhaustion:

1) 1H Double top pattern formed at significant level of resistance.
2) 1H TDI divergent and falling steeply.
3) 15M TDI in sell zone.
4) 15M price action trading under 50 EMA.

Entry criteria:

A break and retest of the most recent neckline could prove to be a lucrative spot to get short and take profits at the 61.8% level which lines up with the most recent level of broken structure.

Projected RR:

NA as of now, will wait for the neckline to break and see where the 50 EMA stands so we can plot a proper SL.

Comment:

No development on EJ as of yet, but a lower high has just been formed on the 1H chart which is promising.

Still waiting for the neckline to break to look for a possible retest entry.

Comment:

Price has broken the neckline.

No entry as of yet.

I'd like to see price pull away for a few hours and return to the zone.

WIll place a limit order during the Aussie/Asia session if price continues moving lower from now until market NY close.

Comment:

EJ has broken and held nicely below the neckline.

I am placing a sell limit order at 126.038 with a 47 pip stop above the previous high with a TP of 98 pips for an RR of slight over 1:2

Comment:

Trade active:

EJ sell limit has been triggered.

Will update as trade progresses.

Comment:

Not much development on EJ during the Asia and London open.

But another lower high seems to be forming out which is a good sign and still keeps the trade valid.