2 and 4 hour bearish divergence - SHORT

Large bearish divergence has formed with likely double top on the 2 and 4 hour chart at previous ATH. This could be a good opportunity for a short. If you want additional confirmation, you can wait for candle closes below the box for entry.

5-10% should be relatively achievable targets with aggressive targets at the .382 fib around .435 or the .5 fib around .415. Stop loss 1-2% above the ATH.

Comment:

Price just shot up minutes after posting this. If candle closes above the box, this trade is invalidated on the double top formation. The divergence may still be in tact.

Comment:

2 hour candle closed invalidating the double top, the divergence on the 2 hour chart is in tact, but has dropped to a 6 point divergence. The 4 hour doesn't close for another 2 hours, but is barely divergent if it were to close right now. A low volume spike back above .53 could make for a good entry.

I would consider this a risky setup at this point. I would be much less aggressive with targets at this point. The 1 hour divergence yesterday got blown away and with the spikes we've seen the last couple days, that could easily happen again here. If next 2 hour candle closes red, that would put more confidence back in it for me.

Updated fib levels:
.382 at .453
.5 at .439

Trade active

Comment:

Overnight price shot back up and printed a 3 point bearish divergence and double top on the 4 hour chart. My target is 10% from the candle close where the bearish divergence formed (0.455), which I'm considering 75% likely to hit.

Updated fib levels:
.382 at .46
.5 at .435

Comment:

10% from an entry at .53 (.477) hit earlier today.