There are multiple sign of a bearish movement that include :
- ABCD bearish pattern
- Closing Below a Resistance Level
- Hitting the Top of the channel
- RSI and Price Divergence
While I will have to see what the price open at on monday to make a proper entry I'm going to aim for a 2/1.
Entering around the middle of the channel which should line up with the 0.38...
Reasons for a Short
- Price Yet to make a clear break through history resistance and psychological price level of $17000
- Bearish Bartley Has Formed
Signs of Confirmation
- Forming of a double top
- Breaking the Bottom Line of the upward channel
- Closing Under $15550 Level
Did I miss any points of interest?
Depending where the friday daily candle closes will signify to me if next week will be bearish or bull.
Things to keep in mind:
- Price has hit a strong resistance level
- 4hr chart upward channel
- Hit 1.27 fib ext
If friday closes below this red line the price has formed a lower high signalling a bearish trend. This line is placed on the fib 0.38...
Im predicting price will retrace to the 0.618 fib then drop down to the 1.27 fibo expansion of AB at which point will be perfect for a gartley pattern to form. Am I jumping the gun? Lets find out.
Ill be entering at the 0.618 retracement stop loss a few pips above A.
Take profit at 1.27 and at B.
Then Ill enter a Buy Order At 1.27
Stoploss around the X mark...
So the pair as broken bearish and seems to be still stuck in channel on the daily chart.
This is starting too look like a downtrend for this coming week.
Currently it has retraced back to a resistance level. If it does not break through we can confirm this breakout has moved into a down trend.
Don't mind the blue trend lend just a line of interest I want to refer back to.
Looks Like we have a major cross road here which trend will it follow only time will tell.
I believe it might continue bearish with the news today from nonfarm and unemployment as yesterday results were better then expected.
Also it has retraced and tested the 61 fibo 3 times which to me make mind wonder more to the bear side
Just a recalculation of the wedge it has broaden a little bit. Keep in mind this wedge not very important compared to the 4 hour triangle which the price looks like to be nearing the end.
Chur Happy Trading