Japan225 Daily Short: Targeting Downside After 0.7 Fib Retraceme This trade is based on the daily chart of Japan225, where the price has recently retraced to the 0.7 Fibonacci level, presenting a potential opportunity for a downside move. The current market structure indicates a possible reversal from the recent highs, with a key resistance area marked by the red zone on the chart.
Key Levels:
• Entry: The trade is entered near the 0.7 Fib retracement level, capitalizing on the potential for a pullback.
• Target: The target is set at the lower green zone, aligning with a previous support level where buyers may re-enter the market.
• Stop-Loss: A stop-loss is placed above the recent high, as indicated by the upper red zone, to manage risk if the price continues to climb.
Rationale:
The Japan225 has shown a significant retracement up to the 0.7 Fibonacci level, which often acts as a strong resistance area. The daily timeframe provides a broader perspective, suggesting that the price may now face downward pressure. This setup seeks to capitalize on the expected reversal, aiming for a move lower in the upcoming sessions.
Risk Management:
With a clearly defined stop-loss and a favorable risk-to-reward ratio, this trade minimizes risk while allowing for substantial downside potential. As always, adjustments will be made based on market behavior.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
