Following the downtrend from june i see this 46 level as a critical support/resistance zone before we can see a trend reversal or a continuation to the downside. If we can break to the upside the most likely level that we're going to test its the 50 area.
The bat pattern isn't violated yet, until we break our X point so i took that as a confirmation of a posible reversal or at least retracement in this move. I love to see the S/R level comming at a confluence of fibs (.618 and 1.618 ext).
Notice that we also are creating lower highs in the RSI at overbought condition.
Keep it simple, and focus on the process
Twitter: @JeanC680
Jean
The bat pattern isn't violated yet, until we break our X point so i took that as a confirmation of a posible reversal or at least retracement in this move. I love to see the S/R level comming at a confluence of fibs (.618 and 1.618 ext).
Notice that we also are creating lower highs in the RSI at overbought condition.
Keep it simple, and focus on the process
Twitter: @JeanC680
Jean
Trade active:
Filled at 45.94
Trade closed: stop reached