Looking for short trades this coming week on CADJPY... We have had several rejections from the topside supply level, there is a chance we could get one last stop hunt high into the higher supply zone. Let's wait and see what price action we get into next week. Pay attention to Monday, and wait for the daily close to confirm directional bias.
Head and Shoulders forming on the 1H after bitcoin got stopped at the 10450 level which is the 0.786 fibo taken from 10604 high to 9880 low( range we were downdtrending for the past few days as seen on the chart )
That will bring us back on the upper side of the descending wedge formation we broke out to the upside yesterday - green curved line
What's moving this market north? Like the Fanny Mae fiasco back around 2008, the 'implicit guarantee' is at play. Go read up what that is about. In essence this is about an idea that the FED will bail out big corporations. The top industry analysts can find nothing of real substance in the fundamentals to move the DJI (and S&P) north.
I explore the 4H and 1D...
Uptrend started to stalk judged by three weaker bullish candles indicating potential weakening.
Strong move down show first firm decision to chose a direction.
After little retracement providing opportunity to get better risk/reward ratio the trade was triggered.
After reaching new highs of 1555 last week I feel that the bullish run will naturalise this week returning to the 1490 mark.
Reason one: US China trade war has eased (for now)
Reason two: Bearish candle formation
I will personally try and get a better entry at market open around the 1530 area.
TP 1 - 1508
TP2 - 1490
Good luck and as always use correct risk...