This is a pretty nice short setup, but entry position and timing will be critical to avoid getting in a bad spot, or stopped out altogether.
We're approaching the resistance trend line above, which lines up with the "shoulder" height to the left. This could be a tempting place to short, but we need confirmation first. The highs of the trend line to the left are all possible points of reversal, which would mean we have a false breakout of the trend line to the upside, which I'm sure will stop out a few people who shorted too early. This is what I'm waiting for. Then wait for a sure sign that the bearish trend is continuing, and only then should you go short.
We have hidden bearish divergence indicating a continuation of the downtrend. MACD still has to close the gap and should cross over in line with the previous trend highs. Along with the strong resistance, this should be a great short as long as you enter at the right time!
We're approaching the resistance trend line above, which lines up with the "shoulder" height to the left. This could be a tempting place to short, but we need confirmation first. The highs of the trend line to the left are all possible points of reversal, which would mean we have a false breakout of the trend line to the upside, which I'm sure will stop out a few people who shorted too early. This is what I'm waiting for. Then wait for a sure sign that the bearish trend is continuing, and only then should you go short.
We have hidden bearish divergence indicating a continuation of the downtrend. MACD still has to close the gap and should cross over in line with the previous trend highs. Along with the strong resistance, this should be a great short as long as you enter at the right time!