I know its too early to be drawing a H&S pattern but its worth a shot as I'm bearish on this market. Its good to have a trading plan so when price moves according to my chart so I know what to do.
The momentum is strong for US30 and it has been respecting its trendline for quite some time. I'm noticing some form of exhaustion coming since that first wave of sellers came in at the left shoulder area. I feel that there will be another short squeeze up at the current zone before we go down.
I'm watching very closely what happens at the key resistance area (head) at 25740 where I will be anticipating a reversal. Will short upon confirmation at this level.
The first opportunity to short will be at the head and second at the right shoulder.
Longer term picture and the ideal scenario will form a h&s pattern and the right shoulder testing the trendline at its 61.8% retracement at 25418. If this happens, I think we may see a classic pattern that we can trade with.
Long term targets as shown below
TP 1: 24360
TP2: 23500
Lets see how this plays out. Good luck and I would appreciate a like if this helps you in anyway.
The momentum is strong for US30 and it has been respecting its trendline for quite some time. I'm noticing some form of exhaustion coming since that first wave of sellers came in at the left shoulder area. I feel that there will be another short squeeze up at the current zone before we go down.
I'm watching very closely what happens at the key resistance area (head) at 25740 where I will be anticipating a reversal. Will short upon confirmation at this level.
The first opportunity to short will be at the head and second at the right shoulder.
Longer term picture and the ideal scenario will form a h&s pattern and the right shoulder testing the trendline at its 61.8% retracement at 25418. If this happens, I think we may see a classic pattern that we can trade with.
Long term targets as shown below
TP 1: 24360
TP2: 23500
Lets see how this plays out. Good luck and I would appreciate a like if this helps you in anyway.
Trade active:
Going in with a small position