Prices Approaching Resistance, Sell On Strength!
Sell below 109.74. Stop Loss at 110.32. Take Profit at 107.83.
Reason for the trading strategy:
Price is approaching our first resistance at 109.74 (horizontal swing high resistance, 50% Fibonacci retracement). We expect a strong reaction to occur below this level, pushing price down to our major support at 107.83 (horizontal pullback support, 38.2%, 50% Fibonacci retracement).
Stochastic (89,5,3) is also seeing a bearish divergence and is reacting off its major resistance where we can expect a corresponding drop in price.
Reason for the trading strategy:
Price is approaching our first resistance at 109.74 (horizontal swing high resistance, 50% Fibonacci retracement). We expect a strong reaction to occur below this level, pushing price down to our major support at 107.83 (horizontal pullback support, 38.2%, 50% Fibonacci retracement).
Stochastic (89,5,3) is also seeing a bearish divergence and is reacting off its major resistance where we can expect a corresponding drop in price.