Potential selling opportunity on CJ. Market has been pretty much bullish since the break out of monthly down trend on April 2021.
Analysis:
1) Monthly timeframe at known level of U-turn/ or historical resistance area.
2) Daily time frame at a high price and showing signs of weakness from the buyers side. We also have a break of the uptrendline suggesting the bullish run has come to a stop. One can also see RSI divergence on the most recent higher highs. According to Fibonacci We are at a high price on the daily time frame at resistance, we may see sellers stepping in at this Fib retracement (61.80%).
3) On the 1 Hour time we can see a wick rejection at this zone (16/05/2022 20:00PM), as well as RSI divergence as the market made higher highs into this area. This is confirmation that sellers may come in to push price down. I have market an inner and outer counter trendline, once broken I will enter short.
Risk/Reward= 1:3
Stop will be above resistance zone
Analysis:
1) Monthly timeframe at known level of U-turn/ or historical resistance area.
2) Daily time frame at a high price and showing signs of weakness from the buyers side. We also have a break of the uptrendline suggesting the bullish run has come to a stop. One can also see RSI divergence on the most recent higher highs. According to Fibonacci We are at a high price on the daily time frame at resistance, we may see sellers stepping in at this Fib retracement (61.80%).
3) On the 1 Hour time we can see a wick rejection at this zone (16/05/2022 20:00PM), as well as RSI divergence as the market made higher highs into this area. This is confirmation that sellers may come in to push price down. I have market an inner and outer counter trendline, once broken I will enter short.
Risk/Reward= 1:3
Stop will be above resistance zone
Trade active
Trade closed: target reached