Long term trend: Up
Medium term trend: Down
Significant Levels: 1416 (Horizontal Resistance), 1187 (Horizontal Support), 1270 (Medium term Significant Area)
The small Descending Triangle pattern that formed in the chart is a successful one. Those who took the trade recommendation of going short last time, placing the target profit at/near the 1187 level, had been profitable.
As we can see, the 1187 level is a really solid level. As mentioned before, it would be interesting if this level breaks because as this level is so solid, it could be a turning point if this level was broken. But, we confirmed that it is still solid.
There are two patterns we see here. One is the Descending Triangle (not the small one) and the other is the Triple Bottom. These two contradict each other. Descending Triangle indicates a downtrend and the Triple Bottom signals an uptrend. Though I prefer more the downtrend, we need a confirmation of which will prevail. I prefer the downtrend because this is what we trade, the medium term trend, which is down. While the 1187 price level was rejected, we are not certain that the price will not go back there again and retest it. Also, it is possible that a breakout above the Triangle might happen. Remember that anything can happen in the market so we need to know all those possibilities and try to take advantage of whatever is that and of course, according to our analysis.
Also, a Fibonacci Retracement is placed in the chart. If the downtrend prevails, we might see a reaction in the price anywhere in the Fib lines, although the 0.5 level could be a significant one because the short term significant area (1270) is near that level.
Note that, again, anything can happen in the market. So, take note those significant levels and how the market will react to it.
Trade well.
Medium term trend: Down
Significant Levels: 1416 (Horizontal Resistance), 1187 (Horizontal Support), 1270 (Medium term Significant Area)
The small Descending Triangle pattern that formed in the chart is a successful one. Those who took the trade recommendation of going short last time, placing the target profit at/near the 1187 level, had been profitable.
As we can see, the 1187 level is a really solid level. As mentioned before, it would be interesting if this level breaks because as this level is so solid, it could be a turning point if this level was broken. But, we confirmed that it is still solid.
There are two patterns we see here. One is the Descending Triangle (not the small one) and the other is the Triple Bottom. These two contradict each other. Descending Triangle indicates a downtrend and the Triple Bottom signals an uptrend. Though I prefer more the downtrend, we need a confirmation of which will prevail. I prefer the downtrend because this is what we trade, the medium term trend, which is down. While the 1187 price level was rejected, we are not certain that the price will not go back there again and retest it. Also, it is possible that a breakout above the Triangle might happen. Remember that anything can happen in the market so we need to know all those possibilities and try to take advantage of whatever is that and of course, according to our analysis.
Also, a Fibonacci Retracement is placed in the chart. If the downtrend prevails, we might see a reaction in the price anywhere in the Fib lines, although the 0.5 level could be a significant one because the short term significant area (1270) is near that level.
Note that, again, anything can happen in the market. So, take note those significant levels and how the market will react to it.
Trade well.