Higher timeframe usage here.
We have a weekly pennant, with both trendlines starting to come into the picture.
If you go back a month, we actually predicted this right shoulder forming and now we have perfect confluence.
We had a very tight weekly trading area last week and we need to break this support for the next wave of bearish momentum. If it holds, expect...
The vaccine news caused a huge spike to the upside which may have now gathered liquidity from sellers within the range. I will be waiting for a significant pullback followed by structure shifts before I get involved in a sell position.
The path shows what I think is most likely to happen. In reality I'd love to see the 61.8% and trend line retested.
Personally I'm buying above the daily resistance just to confirm and prevent chop.
Sells on break of trend line/61.8 level to test 1.30 if bad fundamentals align.
I would think the majority of retail will now be expecting buying continuation after seeing this 4-hour structure break and re-test. Personally, I am more inclined on selling pressure down into the key level marked. This will wipe out the majority of retail SL's before flying to the upside. My current bias is bearish but I am happy to flip biases if we see a close...
So bigger picture, until we break the 133.000 Higher Low, we're still in an uptrend technically speaking.
You can see the support forming within the pennant formation, which con-fluently lines up perfectly with the 61.8% Fibonacci Level.
Anything between 134.800 and 136.400 is a no trade area for me.
Initially there doesn't seem to be a lot of downward target...
I CAN CURRENTLY SEE DIVERGENCE ON RSI BUT I WILL BE WAITING FOR D TO COMPLETE TO CONFIRM DIVERGENCE.
FIRST TIME PRICE IS COMING BACK TO THE DEMAND ZONE SO EXPECTING PRICE TO BOUNCE.
COULD WAIT FOR A TRENDLINE BREAK TO CONFIRM THE REVERSAL.
IF PRICE BLOWS PAST THE (X) & CANDLE CLOSES THEN BAT HARMONIC IS INVALID
HAPPY TRADING TRADERS
The last 15M candle closure indicates some buying pressure after the structural shift but then again this could just be end of week market manipulation. We are more than likely to see the price come down to test the strong supportive level and gain liquidity before we see a strong upside move but then again price could fly to the upside from the current area it...
So we are still within the same structure of Higher and Lower Highs (see chart attached from FRIDAY for bigger picture outlook), however, down on the 4hr we can see a great reversal pattern forming as an Inverse Head and Shoulders here in line with the order block identified.
Looking for the right shoulder to form and then we'll retest the neckline and see if we...
GJ very choppy with brexit on the lower timeframe so we're looking on the daily here with the current structure noted.
Buys on the third touch of the trendline or with a closure above 139.00 and the 61.8% fib area.
Sells if the trendline is broken and the 38.2% fib also broken.