Taking a closer look at this 4-hour chart I've got a hunch that there’s a neat short opportunity brewing up here. I've got my eye on that 2355 mark – that’s where I reckon we could see the action turn south, and I'm looking to ride that wave down to a profit target in the zone between 2310 and 2285.
Why 2355? the Fibonacci showing me a retracement to the 0.5 level at about 2341.25. That's often a tough nut to crack for price if it's heading up or down. But I've nudged my entry point up a bit, aiming for that sweeter spot near the 0.62 level. Just feels like we might see a bit more of an upward nudge before things turn around.
The RSI is sitting pretty above the midline, which usually means things are looking pretty bullish. But here’s the kicker: there's a bearish divergence showing up. The price is hitting higher highs, but the RSI isn't playing along – that’s my cue that the momentum might be running out of steam.
I haven't spotted any particular chart patterns screaming "bearish!" but I'm leaning on that classic idea that what used to be support can turn into resistance. So, when the price reaches my chosen entry, I'm anticipating it’ll find it tough to climb any higher.
Of course, I haven't forgotten about risk management – that’s a biggie. I'm thinking the distance between my entry and the target gives a decent risk-to-reward ratio, which is what I'm always gunning for. I'll be setting a stop loss too, probably above the recent high or around the 0.786 Fib level, just to keep things tight if my bearish bet doesn't pan out.
Why 2355? the Fibonacci showing me a retracement to the 0.5 level at about 2341.25. That's often a tough nut to crack for price if it's heading up or down. But I've nudged my entry point up a bit, aiming for that sweeter spot near the 0.62 level. Just feels like we might see a bit more of an upward nudge before things turn around.
The RSI is sitting pretty above the midline, which usually means things are looking pretty bullish. But here’s the kicker: there's a bearish divergence showing up. The price is hitting higher highs, but the RSI isn't playing along – that’s my cue that the momentum might be running out of steam.
I haven't spotted any particular chart patterns screaming "bearish!" but I'm leaning on that classic idea that what used to be support can turn into resistance. So, when the price reaches my chosen entry, I'm anticipating it’ll find it tough to climb any higher.
Of course, I haven't forgotten about risk management – that’s a biggie. I'm thinking the distance between my entry and the target gives a decent risk-to-reward ratio, which is what I'm always gunning for. I'll be setting a stop loss too, probably above the recent high or around the 0.786 Fib level, just to keep things tight if my bearish bet doesn't pan out.