Price on the 4H chart has been climbing. It reached a new high in early-mid November and found resistance off the Daily descending trend line (bold orange line). Price fell and has been in a range under the previous highs from mid-September. Price has now fallen under the ascending 4H trendline (gray dashed upward-sloped line) and has shown a 2-bar market reversal signal off this line. Price has also been kept down under the 200MA, testing above several times since mid-November, but unable to keep a position above.
Using the previous upward move's fib retracement, we can see a target area around the previous 61.8% retrace level for about a 1:3-3.5 Risk:Reward. I will also be looking to set my stop to break-even once price reaches, and closes below, the 50% mark, where the previous swing low was.
Using the previous upward move's fib retracement, we can see a target area around the previous 61.8% retrace level for about a 1:3-3.5 Risk:Reward. I will also be looking to set my stop to break-even once price reaches, and closes below, the 50% mark, where the previous swing low was.