After a quick look we may be tempted to enter a short straight away, but we need to be careful. It's not a good time for a short yet for 3 reasons:
1) We are visiting a week resistance level (BLUE RECTANGLE) as shown by our Volume At Price and with a shooting star above average volume as you can see from our Volume Price Analysis. (HIGH VOLUME WOULD BE BETTER.)
2) VPA is falling on the break out (IT SHOULD BE RISING) and rising on the test towards the resistance line (SHOULD BE FALLING). This can be a classic trap by the insiders who want us to believe that this will be a true Break Out, it'll probably be a Fake Out though.
3) We are quite close to a 4th touch of our trend line.
If the market will reach that 4th touch I will post a possible Set Up. we'll be looking for either a Break Out of the trend line (QUITE COMMON ON THE 4TH TOUCH) or for a nice SHORT. I favourite the short to be honest, but time will tell!
1) We are visiting a week resistance level (BLUE RECTANGLE) as shown by our Volume At Price and with a shooting star above average volume as you can see from our Volume Price Analysis. (HIGH VOLUME WOULD BE BETTER.)
2) VPA is falling on the break out (IT SHOULD BE RISING) and rising on the test towards the resistance line (SHOULD BE FALLING). This can be a classic trap by the insiders who want us to believe that this will be a true Break Out, it'll probably be a Fake Out though.
3) We are quite close to a 4th touch of our trend line.
If the market will reach that 4th touch I will post a possible Set Up. we'll be looking for either a Break Out of the trend line (QUITE COMMON ON THE 4TH TOUCH) or for a nice SHORT. I favourite the short to be honest, but time will tell!
Comment:
That break of the resistance line did not happen. However, I think the market will not go any further than the 0% FIB level, but we need confirmations of course. Looking at the H4 timeframe I can see a Long Legged Dojy with high volume (VPA), which is a classic signal of a trend reversal. And VPA looks like this will not move much further. Also, there's a pivot high on the last higher low but we are lacking a pivot low on the last lower low, which is a sign of weakness that can lead to a sideway. I'll take a close look at GJ in the next hours. I will look to trade the way up to the 61% FIB level.