The price is at two important levels at the same time: horizontal support and trendline support. Breaking through the two levels is a good opportunity to go short. A possible rejection can happen, though.
But I think it more likely to be a breakout considering that the price has retested the trend line just recently and Stochastic shows a bearish divergence....
The price is at two important levels at the same time: horizontal support, trendline support. Breaking through the two levels is a good opportunity to go short. On the other hand, we can go long in case of a rejection.
I think it more likely to be a breakout considering the previous long consolidation period which can indicate the weakening of the overall trend....
Reversal or retracement? I can't tell. It is still not obvious. The only thing that can confirm to me the change of the trend direction is breaking the last support level. If that happens, we can ride a very big down move. In the long term, I expect this scenario.
The another one is a little push up till the recent resistance level.
In the big picture, notice...
The price failed at closing above the resistance level and formed a bearish engulfing candle & a double tops pattern which indicate a down move. Also, RSI shows a bearish divergence and A/D shows shows a distribution reading. All indicate a good opportunity to short.
The first target can be the recent support at 1.22400.
The price is at interesting levels that make it a good opportunity to long:
- Daily support level.
- 50% Fib retracement of the latest up move.
- Resistance of the down retracement channel.
- Oversold on Stochastic.
Breaking up through the down channel may indicate the ending of the retracement. So, it will be the good time to long.