Good news for all who wait for market drop. Bearish
divergence was formed by RSI
near a strong resistance level
. It's the 1st solid reversal signal on the daily chart
. Probably we'll see down movement and based on hourly charts we can try to open short trades. There is only one thing which does not support our short trades now. It's ADX
confirming strong up movement. If ADX
reverses and starts falling, we'll be able to open short trades on the daily chart
also. For all short trades stop orders must be placed above 4800. Targets are these reversal zones. MA20, MA50 and MA100 can be strong lines for reversal the market in the direction of the up trend.