After seeing repeated rejection, it appears that EC could make another move to the downside. As stated last week, we are in a severe bearish trend so we will only be looking for short opportunities. Once the trend breaks we will then switch to longs. Remember: The trend is your friend until it bends. :)
Price has been in a clear bearish trend. On the 4H timeframe we have made a clear pullback to the latest area of structure and resistance. At this point we can expect price to continue in this bearish trend by continuing its move to the downside.
Price is in a clear downtrend. On the higher time frames we have opened below the support. Currently we are consolidating as we begin to come into the Asian trading session. Looking as previous moves, we have experiences phases of consolidation before a large move to the downside. As such we are targeting the next structure zone found on the daily time frame as our TP.
GU has been in a bearish trend since mid way through last week. We have seen price pullback to 1.3924 after the break of the trendline. As such this could be viewed as a retest of the area before ultimately continuing the bearish trend.
Price has broken the supporting trendline to indicate a potential trend reversal. We were then patient and waited for further bearish conformation but didn't get any. Instead we witnessed price move up the trendline using it as new found resistance.
Now we have seen some increased bearish pressure and have closed under the 50EMA. Historically, this has resulted...
Bears have managed to take control and bring price to test the monthly support. This could give the bulls an opportunity to regain control and move price. We can also see a double bottom being formed which again can be confirmation of a bullish takeover.
From previous entries, we can see that out 'long' positions have historically been more successful. This is because price is in a clear bullish trend (going up.) Therefore, we have waited for price to break our key area before entering a long position. As price move into this new territory for the first time in over a year, it is important that we are extremely...
Again, we find ourselves at a crucial area of resistance. The bulls have been struggling since early January to break this zone. We have a tight SL set so if they do manage to break this zone we can enter going long on the retest. However, if indications are correct, we could see another move to the downside to the previous trades entry point.
A huge bullish candle to test the descending channel and the previous support (now resistance.) This could be viewed as a potential fakeout in order to stop out those already in a SELL position before allowing price to continue its move to the downside.
Momentum has been in favour of the bears recently as we have witnessed. For this trade to be complete we are needing to break a firmly established area of support. As such we should be approaching this trade with caution. However, price action is showing signs of a push to the downside which is also confirmed by the RSI.