Hi Traders! The market is in a longterm Downtrend and in a shortterm strong Uptrend.
Let's look at the daily Chart first:
As you can see it is making lower lows and lower highs. In addition we can see here a descending Channel. The next main Levels are also drawn on this timeframe.
Consider the position of the price at this moment; it is at the upper Trendline. We're expecting a Pullback, to break - later on - the channel (Longterm Plan).
Now we move on to the next H4 timeframe:
So, here we can see a strong Uptrend. Look at this behavior of the market:
When the price reached the Trendline firstly, it bounced back immediatly (normal behavior). Then it came back to try to make another high - but it failed to do it. That means, that the bullish Power is weak now and the bears are getting stronger for now. It made a double Top and is now retesting 50 MA. The target is the next Support and Trendline.
Now we go to the Entry Timeframe:
It is at a temporary Support and is bouncing back now. That's the time we will enter the trade.
We recommend to short at the orange box when a Reversal Pattern (false Break, etc.) appears.