Why should we be bullish: Downtrend channel
was already broken last friday, supported by strong indications (Strong MACD
and Stochastics) coupled with price action (higher highs and higher lows). If we take a step back at the daily chart
, you can even notice that 1.10720 was a retracement from the fibo!
When to enter:
Let's wait to show a buy signal from the stochastics or once it retraces to the lower uptrend channel
. But the TREND must HOLD as a pre-condition
When to exit:
Once it reaches highest resistance at 1.1014. This is consistent with fibo extension which I laid down on the latest swing.
Risk reward ratio: 2.14