TECHNICAL:
Reason 1:
- Price moved up to 110.68 into a strong resistance/support zone
- This zone corresponds with what could be the corresponding shoulder of a Head and Shoulder bearish reversal pattern.
Reason 2:
- Right shoulder of possible H+S coincides with 78.6 fib level of previous bearish move
Reason 3:
-Price broke below ascending trend-line from 29/05/2018 - 19/06/2018
- Retracement from low of trend-line-break, re-broke the ascending trend line, however I will wait to see whether the 4h candlestick will close back below.
FUNDAMENTALS:
-US/China trade war possible escalation, alot of fear surrounding this.
-EU have hit back at the USA with billions in tariffs, set to be launched on Friday 22/06/2018
**Neckline support @ ~ 109.912 would need to be broken to confirm this pattern/bearish reversal
Appreciate any thoughts, comments. Constructive criticism only please! thanks for reading,
James
Note
-formed nice rejection candles on 30min + hourly.-4h looking like possible bearish hammer forming, will wait until close of candlestick to confirm and then enter short
Note
- Price reversed at the 78.6 fib level to form the second shoulder- Now sat at neckline support, waiting for a breakthrough
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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.