A few points below are likely to show that price is about to reverse , turning bullish.
1) Price has reached D1 horizontal support
2) H1 & H4 charts showing a bullish divergence (purple arrows)
3) Bearish momentum seems to be ending due to the small bear candles forming.
However before committing to a long trade, am waiting to see the formation of a bullish engulfing candle so price passes & retest the 20 SMA as well as the trend line resistance (black line). Failing that if price will continue bearish.
1) Price has reached D1 horizontal support
2) H1 & H4 charts showing a bullish divergence (purple arrows)
3) Bearish momentum seems to be ending due to the small bear candles forming.
However before committing to a long trade, am waiting to see the formation of a bullish engulfing candle so price passes & retest the 20 SMA as well as the trend line resistance (black line). Failing that if price will continue bearish.
Trade closed: target reached:
In my previous post analysis , i predicted that price reverse was likely due to the bullish divergence (purple arrows). However price had to form a bearish engulfing candle so it passes the 20SMA & trend-line resistance (black Line). Furthermore price had to retest the trend-line (labeled) to signal that the price reversal was complete. This is exactly what happened, price rallied by 142pips from the trend-line retest. (At the time of writing).