A rectangle consolidation near recent highs (potential distribution or continuation) trading in sideways
Volume is Declining (red arrow), which during consolidation usually suggests weakening momentum.
RSI Divergence: RSI is forming lower highs while price is forming equal highs → This is a bearish divergence.
Trade Setup: Looks like a short position has been taken with:
Entry: Nears support(~110,200)
Stop-loss: Just above resistance (111,840)
Target: Lower zone of support (~108,700)
Key Signals
Bearish Divergence on RSI: Indicates weakening bullish momentum.
Falling Volume: Suggests lack of conviction from bulls at the highs.
Equal Highs on Price: While RSI declines, this adds weight to the short bias.
Tight stop-loss (risk-managed)
⚠️ Watch for fakeouts: If price breaks above the rectangle with volume, your stop might get triggered, but it would invalidate the bearish setup anyway.
Thanks,
Volume is Declining (red arrow), which during consolidation usually suggests weakening momentum.
RSI Divergence: RSI is forming lower highs while price is forming equal highs → This is a bearish divergence.
Trade Setup: Looks like a short position has been taken with:
Entry: Nears support(~110,200)
Stop-loss: Just above resistance (111,840)
Target: Lower zone of support (~108,700)
Key Signals
Bearish Divergence on RSI: Indicates weakening bullish momentum.
Falling Volume: Suggests lack of conviction from bulls at the highs.
Equal Highs on Price: While RSI declines, this adds weight to the short bias.
Tight stop-loss (risk-managed)
⚠️ Watch for fakeouts: If price breaks above the rectangle with volume, your stop might get triggered, but it would invalidate the bearish setup anyway.
Thanks,
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.