Price is currently at the top of a bearish trend line after strongly rejecting previous resistance. Furthermore, price is at the 61.8 fib retracement zone and divergence is visible where price is making lower highs and RSI is making higher highs indicating a sell.
Price has reached the top of a bullish channel where regular divergence is clear. Last time we had regular divergence at the top of the channel price fell to the bottom of the channel (as shown). I expect price to do the same thing here. Stops should be placed above the channel in case of a breakout and targets should be placed at previous resistance or the bottom...
few days ago we managed to get more than a hundred pips from shorting this pair (see attachment). Now the situation has changed, since we came back to previous structure and started consolidating right at the trendline retest. Besides, the zone we're on is a daily structure that could push price up, according to the major trend.
The RSI divergence down on...
We like GKN over the medium term and hoped to see the shares break to new highs. This is looking increasingly unlikely in the short term as the shares stall at resistance. The bearish divergence on the RSI and the relative ratio is a concern. If the shares close at this level or lower (329p) then we will also have a nasty looking bearish engulfing candle.
Monitoring the EURGBP pair we have identified an RSI divergence on the Hourly chart.
We anticipate to see a retest of the 0.84260's level after the false break out (see market conditions) followed by a break-out of the rising wedge formation with even bigger profits.
Profits and stop losses are set according to previous structure supports with the latter being...
DCC has corrected sharply in recent weeks and now appears to be stabilizing in line with the dominant uptrend support line. The bullish divergence on the RSI is another reason to believe that a bounce could be seen in the short term.
Unilever has formed a small base on the daily chart inline with major support. There is also bullish divergence on the RSI and we believe scope for a bounce towards 3400p in the short term.
We could see this grind towards the target over the Christmas period.
While monitoring the GBPCHF pair we have noticed a clear RSI divergence.
We will be looking at smaller timescales for additional confirmation of the move prior to placing any orders. Supports/resistances from previous structure are located at 1.25000 and 1.21500 levels
All feedback and comments are highly appreciated.
Technicals (Bearish) - Price has just tested resistance zone and showing signs of bearish momentum, the divergence provides confluence.
Fundamentals (Bearish) - Increasing speculation around USD rate hike provides more bearish momentum for the pair.