Double top complete - Trend Reversal TBC
Hi All,
A double top pattern has complete and down trend seems to be reversing albeit not reaching its assumed target of peak to support distance. This might suggest a possibility for additional bearish movement however other indicators would suggest otherwise.
Short term trend reversal seems to have occurred, however an additional days confirmation above 3.09 would be recommended prior to entering long trade.
RSI seems to have begun bullish momentum.
MACD too seems to be turning bullish.
Based on the movement back in June we can assume retracement to previous support line at 3.27 pending trend reversal confirmation. Exit of trade would be recommended prior to seeking additional upside due to long term down trend. Confirmed clearance of this trend line at above 3.35 would suffice for an additional long trade with exit to next resistance at 3.66 OR confirmation of trend reversal as EXIT.
TRADE OPTIONS;
Possible long option; Enter at confirmed break of 3.09. EXIT first resistance @ 3.27 for 5.8% Gain.
Possible long option. Enter at confirmed break of 3.35. EXIT second resistance @ 3.66 for 9.2% Gain.
Possible short option; None, TA not providing enough support.
Let me know your thoughts,
Thanks all,
Trading Corner
**This is not financial advice, please act with due diligence when trading any market**
A double top pattern has complete and down trend seems to be reversing albeit not reaching its assumed target of peak to support distance. This might suggest a possibility for additional bearish movement however other indicators would suggest otherwise.
Short term trend reversal seems to have occurred, however an additional days confirmation above 3.09 would be recommended prior to entering long trade.
RSI seems to have begun bullish momentum.
MACD too seems to be turning bullish.
Based on the movement back in June we can assume retracement to previous support line at 3.27 pending trend reversal confirmation. Exit of trade would be recommended prior to seeking additional upside due to long term down trend. Confirmed clearance of this trend line at above 3.35 would suffice for an additional long trade with exit to next resistance at 3.66 OR confirmation of trend reversal as EXIT.
TRADE OPTIONS;
Possible long option; Enter at confirmed break of 3.09. EXIT first resistance @ 3.27 for 5.8% Gain.
Possible long option. Enter at confirmed break of 3.35. EXIT second resistance @ 3.66 for 9.2% Gain.
Possible short option; None, TA not providing enough support.
Let me know your thoughts,
Thanks all,
Trading Corner
**This is not financial advice, please act with due diligence when trading any market**
Comment:
Idea worked out very well.