- Reasons to Short
1. Price has retraced up to a strong Supply Level and is showing signs of exhaustion by analyzing the Candlestick Price Action at this level.
2. A Rising Wedge can clearly be seen and is indicative of a bearish reversal pattern.
3. Current Price Level has also reached a prior ascending trendline (now acting as resistance)
4. Bearish Divergence can be seen on the RSI as price level reaches overbought conditions.
- I will be looking for this weekly closure candle to give me further insight to this setup, can be a good opportunity for next week.
Comment:
Last week's closure showed a strong bearish move, breaking the Rising Wedge. This week I will look for a re-test of broken structure to confirm the downside move and go short. Overall, I am very pleased with the Weekly Closure, being that the candle closed in an inverted hammer. (Bearish Candlestick Pattern). I will continue to update this idea as the week continues. Cheers.
Comment:
I forgot to update, my apologies. However, the trade was a success. I took it short all the way down to .98.