US100 Analysis: Bearish Weekly Trend, Bullish Cypher PatternMarket Structure:
Timeframe:
Weekly: Bearish trend still intact.
Daily/4H: A bullish Cypher pattern has formed, offering a potential reversal opportunity.
Key Level:
The 0.786 Fibonacci retracement level is the ideal entry for this Cypher pattern.
Price is approaching a strong support zone at this level.
Trade Setup: US100 Long (Cypher Pattern Completion at 0.786)
Entry:
Wait for price to reach the 0.786 retracement level of the Cypher pattern.
Look for bullish confirmation (e.g., bullish engulfing candle, RSI divergence, or a strong bounce).
Stop-Loss:
Below the X-leg of the Cypher pattern for added safety.
Take-Profit Targets:
TP1: 38.2% retracement from the D-leg.
TP2: 61.8% retracement from the D-leg.
TP3: Retest of the recent swing high.
Risk Management & Strategy:
Risk-Reward: Ensure a minimum of 1:2 R/R ratio for this trade.
Confluences for a Strong Entry:
Weekly Bearish Trend: But a temporary bullish retracement is possible.
Fibonacci 0.786 Level: High-probability reversal zone.
RSI Confirmation: Look for oversold conditions.
Price Action: Bullish candlestick formations before entering.
Final Thoughts:
Short-Term: Expect a bullish retracement from the Cypher pattern completion at 0.786 Fibonacci level.
Long-Term: If the weekly bearish trend remains strong, watch for rejection around key resistance levels for another short opportunity.
