Technicals:
- potential high test bar (rejection pin bar)
- retest of resistance at 0.7550
- retest/rejection of 50 and 20 ema
- 50% Fibonacci retracement rejection
- Convergence on Stochastic and RSI
entry - below low
stop - above high
target - previous swing low or lower
Case for entry short:
downtrend on 1 hour chart with successive cycles producing clean LLs and LHs;
declining trend line tested for the third time;
retest of 20 ema giving a high test/shooting star/bearish pin bar reversal close; and
retest of resistance ( at previous low) at ~ 0.7620 which coincides with Fibonacci cluster (0.382 and 0.618) from two swing points.
Price action has maintained a falling direction with passably uniform cycles below the 10 ema and trend line resistance offering entries below conspicuous high test bars. The moving averages are in their correct order and fanning out pleasingly. Tonight's set up is also an entry below the high test bar that has rejected resistance at ~17.60 and bounced off the 10...
Seeing a high test close on Friday below 1.5400 combined with bearish divergence on Stochastic sounds like preparation for price to possibly fall into perhaps a previous support level at ~1.5100. This set up gives a rough 1:1 reward:risk profile if the stop is placed above Friday's high test bar.
Crude oil has shown a promising downtrend respecting key levels where it's seen to be giving beautiful entries on its visibly apparent journey south. Currently, a high test close rejecting 99.60 after a pullback presents another such entry with a target area aimed at 88.50. 99.60 is within close proximity to the 38.2% Fibonacci retracement level. Today's high test...
Gold (XAU/USD) has shown repeated weakness and is once again offering a short entry. A break below and a retest of 1240 forming a high test yesterday bodes well for further price decline. The reward potential is a hefty 5:1 on the way down. Although a set up is still visible, there are, however, a few words of warning. Beware of Stochastic and RSI divergence,...
