Previous short trade played out perfectly, looking for an additional short entry
possible short trade set-up
- Entry at 61.8% or 71% for further downside mvnt ( hoping for tap of the weekly key level, 71% and trendline before downside mvnt)
- Will wait for signs of reversal
What can we see:
1. Descending trend-line, third touch ( anticipating further downside mvnt if oil can break lower)
2. Inserted the fibonacci tool. The 61.8% fib level lies on the Weekly key level, therefore looking for a sell from Region
What can we see:
1. Previous rejections off the zone indicating sellers in...
- continuation to the upside
- anticipating a possible sell from the trendline + the 71-78% fib level.
- pair could spike to the 88% /100% fib level and the resistance key level of 64.750 before a sell off
- there is a key level at 60.750 which also falls in line with the 61.8% fib level. this region (blue...
- possible retest of the trendline before further downside
- pair bounce on trendline twice (yellow sphere), thereafter, pair broke out (pink sphere).
- there could be a possible short opportunity if pair rejects the ascending trendline
- pair could spike to the 100% fib before continuing its downward mvnt
- rejected the descending trendline (3rd rejection) possible mvnt to the downside.
- anticipating 1-2 more rejections of the 61.8% fib level + trendline before shorting.
- possible spike to the 71%/ 78% fib level before pushing further down
TRADE = INVALID IF:
1. prev. daily candle hit 71% fib level and closed below the 61.8% key level (rejection)
2. prev. daily candle closed below the daily descending trendline (green).
points 1 + 2 above, indicate a possible short trade setup (pair currently running in a downtrend = Shorts >>> longs)
- yesterday there was a...
looking at the weekly time frame, it is clear that the pair has been moving in a symmetrical triangle as the first weekly trendline (pink) connects a series of lower peaks, while the second weekly trendline (pink) connects a series of higher troughs.
last week, the weekly closure broke the inner weekly descending trendline (pink) and a monthly key level,...
I use multi-frame technical analysis to support my set-ups as higher time-frames are always more reliable. Therefore, lets look at UC by starting on the monthly time frame.
The ascending trendline, indicates that the current trend is bullish, thus looking for longs will be better than shorts
Looking at EU in more detail:
Weekly: a downtrend is still evident, as the weekly descending trendline (pink) has not been broken by this pair. Additionally, a bigger descending trend indicated by the monthly trendline (black) still stands. Thus, it is safer to look for possible short entries on this pair.