The price is going to reverse from the resistance zone formed by SMA100, the downtrend line, and 1.10600 resistance level. Probably the market will continue the downtrend. If so, this reversal and a breakout below 1.10200 support and the local swing low will provide us a new sell opportunity.
Entry-level can be below 1.10200 Stop-loss orders should be placed above 1.10700 Profit-target can be placed at 1.09500 support.
RSI confirms the price reversal. MACD lines and histogram are going to support the downward movement.
@Simple4ex, it is time to do nothing. Tiem for sell was when the price broke the local uptrend line and the swing low. After that the market fall and this movement could give profit. After bouncing from 1.09500 this trading idea is not workable any more. We have to wait for a new trading opportunity.
umeh_barry
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Great idea. Just a quick question. What do you mean when you say rsi and mac-d confirms bullish or bearish movements. What do you look for in those two indicators.
DLavrov
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@umeh_barry, RSI provides good signals confirming price reversals. The signals are strong when RSI line reverses in the oversold zone 0-30 and overbought zone 70-100. So the price and RSI must reverse closely at the same time in order RSI could confirm the market reversal.
MACD lines moves upward or downward confirming the same market direction. The same goes about MACD histogram - if it move upward = we have bullish movement on the chart and this indicator confirm it. If MACD moves downward = we have bearish movement and this indicstor confirm it.
chartcutie
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Thank you so much for putting the support and resistance levels on your chart!! I just published my very 1st chart idea a little while ago!!!
DLavrov
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@getchart, you are welcome! My congratulations with your 1st idea, I wish you good luck in this filed)