A fair bit of movement considering volume for the bank holiday for the UK, however this was irrelevant due to American fundamentals and news moving the markets today. Seeing that large wick on the 4H chart indicates to me that we will see a correction from todays impulse. Looking to ideally ride it to previous lows from last week.
Market directional bias is currently bullish, however looks like it has been countered by a very strong bearish candle. Furthermore can be seen as a little double top too which could indicate a slight push to the downside. Key level is also present on the strong bearish candlesick as previous history shows us numerous wick rejections present.
Reasons to sell
Strong resistance level at $1.90 - $2.00 currently being rejected once again with a 4th touch.
Looks like there was a fake-out move around the 23rd-24th March with price breaking out of the strong resistance level previously mentioned.
Weekend (saturday) and nearing end of monthly candle closure where a correction usually happens
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
Chart posted for me to monitor my progress each week as a new trader.
Sell at resistance and buy at support, if any of the trades go in -20pips exit and enter the reversal, this would be -20pips on the daily to allow for some wicking. Avoid if price opens through any entry when the markets first open.
All credit for chart layout and success to goes to Mario...
Coke Cola is a great long term stock. It has been increasing in value for decades, but of recent has been over stretched. Fortunately for us the world shat itself and KO's value has dropped. So when should you buy it?
There are 2 long term support/resistance areas $48.70 and $44.43 (ish). Let's see how price reacts to these levels and see if there is any buying...
Following a strong bearish move down to my support line. Green line being my support, if it breaks that line we might see another bullish run. steady consolidation at the moment. A good 8% return if you entered from where my yellow rejection is, if it breaks my support down from 30k we could be down to 27k and onwards. This is a smooth test support and resistance...
AAL broke out nicely from the previous resistance (now support) level on a long bullish run. Price has retraced and formed a descending triangle.
Lots of confluence to support a long here. With a TP a the previous high, just pre-gap. My entry at this stage would give me a 72% gain at a Risk to Reward of 7 to 1.
A trade with this R:R ratio means that you could...
BIAS - SHORT:
NZDCAD has been bullish for quite some time but has now reached resistance on the weekly time frame. A Clear daily ascending channel 3rd touch confirmation is also evident, with lower time frames like the 4hr and 1hr showing signs of reversal patterns. SHORTS can into 0.9000 are very favourable.