Price has touched the bearish trendline
(blue) 3 times now, price has reached an area of resistance (as shown by the yellow box) and is also in a key Fibonacci retracement
zone. Finally, on the daily timeframe
we also have a reversal candle, which closed at the trendline
. With this in mind, this is a great opportunity for a short as stops can be placed just above the trendline
and the profit target can be towards the bottom of the smaller bearish trendline
, therefore giving us a great risk/reward ratio.