The descending channel
from 5th August acts as a pivot point
for trend reversal as suggested by the numerous times price was tested and changed direction. Therefore, I predict that price will fall since it has touched the trend line
of the channel. This resistance level
is further implied by the fact that 1.31481 is the 0.236 Fibonacci retracement
level, so price has clearly bounced off of it. The crossover of the +DI
on the Directional Movement
Index may also suggest a trend reversal into a downtrend.
In case my prediction turns out to be incorrect, a stop loss just after the 0.236 Fib retracement level would be most suitable as then the price would have broken the descending channel
, making it lose its power of an indicator for trend formation.
: 2.06 (or possibly 1.2)