Reasons to sell
Overextension of the RSI on the 4hr
Bearish DIV on 1hr and 2hr
Last time we saw a move like this was 04 Nov 2020 with a 20% correction happening
Strong resistance at $6
Head and shoulders still intact (but subject to change as we are in a bull run and this is a bearish pattern) low success rate in bull runs
Could see price revisit $4.80
MCD forming daily bearish divergence on all the indicators i have on my chart along with having a daily shooting star reversal candle and is currently below the contracting channel I have plotted; I think this has atleast a decent amount to go down from here.
Looking at a great setup on British Pound versus US dollar with Bearish Engulfing candle pattern forming on the daily charts between Friday and Monday and drill down to the 4 hourly charts and we see a head and shoulders pattern forming. Both suggesting British pound is about to head lower versus US dollar.
Additionally we have bearish...
New week and we are looking at a new bearish divergence setup showing up on US dollar versus Canadian dollar on the 4 hourly charts with new highs on prices being met with a combination of lower highs on both RSI and stochastics pointing to a bearish divergence and a likely fall in prices over the coming trading session.
Looking to trade this...
I assume based on Dows failure to rally, perhaps this is a sign that market wants to turn around
At each test of resistance, after dropping more than 500 points, the market has continued to push bearish as well as the Divergence also validating the direction.
Smashing the trades out today with G20 out of the way and the start of a new month there is some great setups lining up. Euro versus British Pound being one of those with a bearish divergence forming on RSI. As you can see in our trading view chart RSI has been forming lower highs at the same time as price action was forming higher highs. This...
There is a clear wave count here with bearish divergence and normal wave extensions to back up the argument that a large drop down to at least wave (4) will occur now. Wave 3 was between 1 and 1.618 times the length of wave 1. Thus, wave 3 was the extended wave and so wave 5 is likely to be less than 1 x the length of wave 1. So far, wave 5 is around 0.786 times...
(Monthly chart is used)
The Dow Jones Industrial Average could be due for a major reversal soon because of the following reasons:
1) There is a triple top forming
2) RSI on the monthly chart is showing a severe loss in strength shown by 2 lower highs whilst price makes a triple top (aka bearish divergence).
3) MACD lines have crossed over indicating a reversal in...
GBP/AUD could see a bearish reversal as price seems to have rejected the daily resistance level of 1.8185 and as a result forming a dragonfly doji on the H4. Along with the early hours of today where price failed to break this key area of resistance yet again.
There is bearish RSI divergence occurring on the H4 which suggests the strong bullish momentum could be...
There is a possible correction looming, both RSI and Stochastic showing bearish divergence. There is some resistance at this level with it being testing it 4 times, we are now at the apex of an ascending triangle. The target projected from the triangle measurement is just above the 38.2% FIB level, this are should provide support to a move down before possibly...