Looks like an exhaustion gap to me. Will wait for some recovery before selling.
In this chart I used US 30 Year Treasuries weekly chart to explain how price and indicator analysis work. I cover the basis of divergences, pullbacks, throwbacks, and exhaustion spikes. Pullbacks (red) are seen when price and indicators such as RSI have diverged for a great length (wide divergence) or when you have weak divergence top comparing price and RSI....
USDCAD has had a long rally which started back in June last year. After nearly 3 quarters of run up the hill, the price action shows signs of an evident reversal. How can reversal be expected at the highs ? Studying the price action, we could see that the pair has had a very consistent uptrend for a long time with consistent pull backs and trend resumption but the...
See notes on chart. 3 week price change is 1.89% PA could not form new highs all of AUG and PA is seeming to form a rounded top. Price broke through support and and the trendline, but was pushed up by buyers today. wait on confirmation. Buying DEC 130 Puts I think this gap will be filled before the end of the year.