This is a technical short off the 1.300 Handle that confluences with the 261.8 Fib extension of the corrective wave from 1.25160 to 1.22180, visible on the to the right. On the same D1 TF, Oscillator (12,3,3) is indicative of overbought conditions as are getting smaller by the day, a sign of slowed momentum.
A rebound off the 38.2 Fib Retracement is expected as a minor corrective wave attempts to find support. A correction of more than 50% of the current Wave is unlikely. Long positions will later be taken as soon as PA is favorable. Patience pays.
Other important technical levels have been demarcated on the charts.
- No correction takes place, technical breakout occurs past 1.300. Influx of Buy Stops hit at that region will cause more Bulls to check in.
- Calling tops, especially against established momentum is a dangerous thing to do. You can never be really sure.