In this chart we can see a tentative formation of an ascending channel
. This is following a sharp bullish
rebound from the base of the extended descending channel
on the higher time frames. I'm looking to enter a short position at the top of the channel upon the third touch. The third touch of this channel trend line
will confirm the validity of the channel and therefore confirm my entry of a short position should we see price react accordingly. I'll be looking to target the 61.80 fib level with a potential scale in if we see a correction on the way down. I intend on keeping my shorts open if the trade is going to plan and we also see a break of the bottom channel trend line
. Although, I believe it is unlikely we will see this within this wave but potentially on the next wave down.