as always looking for confluences. confluence is key in trading. highlighted key things on the chart. as you can there is a head and shoulders pattern forming. stochastic about to cross. fib retracement. trendline break and re-test
Based off previous structure (support & resistance), a descending channel, Fibonacci confluences, fundamental analysis and psychological analysis (interpreting what other market participants will do).
I've tried to keep this as clean as possible but, there's so much going on in this chart so please bear with me.
Price action on EURUSD has come into a previously identified support level anticipated to be a rally point following the break down below the neckline of an H&S identified on the Daily Charts (not shown/addressed here). This support level was...
1.Daily resistance in control
2.Support broken Resistance valid (Opposing zone breached) (Strong Indication)
3.Profit margin 1:5+ (could hold if there any sign of reversal
4.No major support until 1.62400 (retest) touched multiple time bound to breach
5.Bollinger band no were near Resistance zone which shows a greater probability of reversal
1.Daily Trend-line broken (uptrend)
2.Resistance broken support valid
3.Profit margin 1:4
Major resistance zone/area breached which indicated bears have capitulated to the strength of the bulls, which also shows us who is in control of the market. Based of two strong confluences which is opposing force breached and trend-line break to the upside.
As shown by my recent trade setup (Linked to this idea), price broke out of a wedge and is now retesting the lower trendline. There is a key area of resistance that price has not broken yet (shown by the blue box), key fib retracement levels can also be found in the same zone, the lower trendline also falls within this resistance zone and finally there is a double...
This is a great opportunity to short gold, any indication of multiple confluence is always good and in this case we have many. For example, price will hit the 0.618 fib retracement zone and at the same time re-hit the trend-line it broke and hit the 20ema.
This is just an opinion of mine, in the past i've found that finding multiple confluence aids one when...
Market is in a downtrend, however the recent outbreak to the upside can be a potential relief rally for the market, and after i this complex pullback has completed the market is going to retest structure lows, and maybe even carry on the underlying trend, which is bearish
Tesco (TSCO:LSE) looks to be approaching a confluence point around the start of February. RSI has been finding support around the 40 level or just below indicating that if price can manage a gentle glide towards this point there could be a move up off the confluence in Feb.