Could go both ways
Updated
I was short here, but consolidation is taking its time and it feels like a coin-flip right now, so I closed my position.
Ideal scenario for me would be to have another bounce up to the red area where depending on the reaction I might try to short. If we breakdown below the support (blue zone), I will try to short that way too, but I suspect the move will be hard to catch as it will be quick. But I don't want to short from this spot right now because we are still in a bullish trend after all.
Other things to consider are bearish RSI divergence on the 4h and the fact that it looks like a bear pennant. I am leaning bearish.
Daily chart looks like a bounce on support or maybe consolidation above support. If we do lose this support though it looks like it will retrace a lot. Target will be green zone.
Ideal scenario for me would be to have another bounce up to the red area where depending on the reaction I might try to short. If we breakdown below the support (blue zone), I will try to short that way too, but I suspect the move will be hard to catch as it will be quick. But I don't want to short from this spot right now because we are still in a bullish trend after all.
Other things to consider are bearish RSI divergence on the 4h and the fact that it looks like a bear pennant. I am leaning bearish.
Daily chart looks like a bounce on support or maybe consolidation above support. If we do lose this support though it looks like it will retrace a lot. Target will be green zone.
Note
Well, we are the red line and we got a reaction as expected. This is a good place to short, since it is very strong resistance. The only problem is that price action over the last few hours looks a bit bullish. There is good Risk/Reward in this spot so I have entered a position.
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