A potential area for a low-risk high-reward trade. The area marked is an AB=CD move that will happen above a prior high which means stops might be taken which will provide ample liquidity for a move down.
Additional confluence - this happens at the 61% Fib retracement level, and also the 200EMA of the 4-Hour Chart. Overall the price is at the 20 Daily EMA area so hope for a bounce from there.
One option is to enter at the level with a Stop Loss based on the ATR. I am mindful that the 78% retracement is also great for a short, but we might miss the move. Another option is to wait for some price action confirmation in the form of a good entry bar, but it will require a bigger stop loss.
Comment
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Whoever is following, in case you are in a similar trade - please secure the stop loss at breakeven, scale out, or manage otherwise. But at the 1 Hour chart, there is a perfectly looking AB=CD Spring Pattern on the long side so better we tighten the stop.
Trade closed: stop reached
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Happy that stop was at breakeven. The Spring setup on the long side was a textbook one which beautifully reached the 161% extension target and now reacts from there.