📉 Description:
XEL has formed a double top pattern, a classic bearish reversal signal. Price rejected resistance around $71.22 and has started to decline, confirming the pattern with a break below the neckline. This setup suggests that sellers are in control, and further downside momentum could follow.
Volume has also shown a slight increase on the drop, adding confluence to the bearish case. If price stays below the confirmation level, we could see a continuation toward the target zone.
🔑 Key Levels:
Entry: Below confirmation level
🔴 Stop Loss: $71.22 (Above resistance)
🟢 Target: $52.46 (Measured move of the double top pattern)
📊 Analysis:
Risk/Reward: Favorable R:R ratio, aligning with technical expectations.
Bearish Confluence: Rejection at resistance, pattern confirmation, and volume support.
Trade Type: Swing short, targeting a deeper correction.
If momentum continues downward, a break of $56.74 (intermediate support) could accelerate the move toward the final target. Keeping an eye on overall market conditions for additional confirmation.
XEL has formed a double top pattern, a classic bearish reversal signal. Price rejected resistance around $71.22 and has started to decline, confirming the pattern with a break below the neckline. This setup suggests that sellers are in control, and further downside momentum could follow.
Volume has also shown a slight increase on the drop, adding confluence to the bearish case. If price stays below the confirmation level, we could see a continuation toward the target zone.
🔑 Key Levels:
Entry: Below confirmation level
🔴 Stop Loss: $71.22 (Above resistance)
🟢 Target: $52.46 (Measured move of the double top pattern)
📊 Analysis:
Risk/Reward: Favorable R:R ratio, aligning with technical expectations.
Bearish Confluence: Rejection at resistance, pattern confirmation, and volume support.
Trade Type: Swing short, targeting a deeper correction.
If momentum continues downward, a break of $56.74 (intermediate support) could accelerate the move toward the final target. Keeping an eye on overall market conditions for additional confirmation.
Trade closed: stop reached
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.
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.