Price action & Psychology - MTFA, counter-trend
Hello !
Key points :
The stock makes lower highs. Selling pressure is building up. It is very unlikely that we're going to break through that confluence zone considering how fast sellers lost control here.
I'm going to monitor this area for an entry (on the hourly chart), either after the stock retests the trendline break or once it breaks the resistance around 7.50.
Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer.
***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities and that it only takes ONE trader to deny your trade.***
Key points :
- Significant zone : that confluence area around 7.00 seems to be kind of special, as you see on the left side of the chart, everything prices dipped below, buyers started getting aggressive and eventually caught up.
- Bearish momentum fading : the downward movement seemed to be pretty strong, but again, it lost all it's momentum once that 7.00 area reached
- Trendline break on the hourly chart : on the hourly chart, we see a trendline break after some consolidation, prices might retest
The stock makes lower highs. Selling pressure is building up. It is very unlikely that we're going to break through that confluence zone considering how fast sellers lost control here.
I'm going to monitor this area for an entry (on the hourly chart), either after the stock retests the trendline break or once it breaks the resistance around 7.50.
Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer.
***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities and that it only takes ONE trader to deny your trade.***