[30-03-2024] Descending Channel and Bearish Divergence $IDUSDT
Updated
IDUSDT is showing signs of a potential reversal in the 4h timeframe. After a period of upward movement, the price has started to form lower highs and lower lows, trapped within a descending channel. There is a critical resistance level at $1.4 that buyers have previously defended, but a failure to hold could see further downside.We may witness a pullback to the 0.5 or 0.618 Fibonacci levels, an area where sellers could potentially look to add to their positions. Traders should watch for volume confirmation on any upward retest to gauge the strength of the move. Additionally, there is a possibility of a bearish divergence forming on oscillators (not shown), suggesting the recent highs in price are not supported by momentum and could lead to a continuation of the downtrend.
Trade Strategy :
- Short on rejections from key Fibonacci levels with an increase in selling volume.
- Stop losses could be placed above the descending channel or the recent swing high.
- Initial profit targets could be set at the 1.0 Fibonacci extension level with further targets at 1.272 and beyond if the momentum continues.
Always manage risk appropriately and consider the use of stop losses, as cryptocurrencies can be highly volatile and unpredictable.
Trade active
Trade closed: stop reached
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