In the past few months with the rise of Corona virus Diageos stock price has really taken a hit with profit losses for the leading spirit making company. Asia is in lockdown due to the virus and othewr consumers around the world are also suffering causing Diageo to take a real bad hit. However this stock is classed as defensive due the fact of even in hard times...
Confluences for this trade
1. Multiple time frames indicating the same long term price movement (bearish)
2. Orange highlighted zone is a key area where price was previously supported and i will be looking for a retest of that region
3. Many touches of the descending channel showing a valid channel as we can see where i have circled in blue where price is...
Huge move down expected
Price is currently in a weekly ascending channel however i am predicting a huge move down.
If price retests the key area highlighted then i will be entering a short position.
great risk reward set up and stops above the key area.
Going to be holding this trade for potentially months.
Trading is about stacking confluences to support your prediction.
Therefore below are a list of confluences to why i took this trade.
1. Monthly and weekly timeframes (higher timeframes) both indicate bearish moment as price is in a longterm descending channel
2. Head and shoulders formation forming on the hourly and 2 hourly chart (Bearish candlestick...
USDCAD ascending channel on higher timeframes. Looking for it to continue falling and touch the lower ascending trendline once more. Also reaching a key fib zone. Possible inverted head and shoulders formation also.
Confluences:
1- Possible inverted head and shoulders pattern (Bullish Pattern)
2- Ascending Channel
3- Key Fib zone potentially reached (61.8) LOOK...
NZDJPY heading for the golden fib zone of 61.8. Also a common zone for price action. Higher time frames show a clear descending channel price is reaching upper descending trendline.
Confluences for the trade
1- 61.8 Fib zone
2. highlighted price action zone
3- Descending Channel
