GBPCHF: Strong Bearish Sign points to a potential Bearish move
On Mon, daily reacted to a flip zone with a hammer. Looking to the left, you would have notice that this area acted as a support and resistance/flip zone(FZ) on numerous occasion. And the week before, price has been hovering there with Bears and Bulls fighting it out as can be seen in the various daily bullish and bearish candles.
Back to the Mon daily hammer. When a hammer happens after a bullish candle at an area of resistance with sign of weakness in the background, usually the price will drop off the next day. Drop it did as can be seen in the bearish engulf on Tue. But price met another flip zone and pull back on Wed. On Thu, we see a rejection of the origin of the bearish move on Tue. Fri we see another hammer. Remember, a hammer is usually a reliable Bearish signal if there's sign of weakness(SOW) in the background. Indeed we did see SOW in Thu rejection candle. Couple by the weekly hammer pattern, I see price coming off next week but the immediate support at 1.1800 area needs to be violated for price to go lower.
DISCLAIMER:
Any opinions, analyses discussed in this presentation are just my personal opinion and do not constitute investment advice.
I do not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
PRICE ACTION only tell half the story. The other key half is VOLUME. For VOLUME drive price.
Back to the Mon daily hammer. When a hammer happens after a bullish candle at an area of resistance with sign of weakness in the background, usually the price will drop off the next day. Drop it did as can be seen in the bearish engulf on Tue. But price met another flip zone and pull back on Wed. On Thu, we see a rejection of the origin of the bearish move on Tue. Fri we see another hammer. Remember, a hammer is usually a reliable Bearish signal if there's sign of weakness(SOW) in the background. Indeed we did see SOW in Thu rejection candle. Couple by the weekly hammer pattern, I see price coming off next week but the immediate support at 1.1800 area needs to be violated for price to go lower.
DISCLAIMER:
Any opinions, analyses discussed in this presentation are just my personal opinion and do not constitute investment advice.
I do not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
PRICE ACTION only tell half the story. The other key half is VOLUME. For VOLUME drive price.