Bearish Head and Shoulders Playing Out! We're seeing a classic head and shoulders pattern forming on the 1H timeframe, signaling a potential continuation of the downtrend. The right shoulder is rejecting at key resistance, aligning with the Fibonacci 0.236 - 0.382 zone (19.23 - 19.28), adding confluence to the bearish outlook.
🔎 Indicators Confirm Bearish Momentum:
🔻 RSI Bearish Divergence & Rejection:
RSI is rejecting from the 50-55 zone, a typical resistance level in a downtrend.
No bullish strength yet, confirming potential weakness.
🔻 MACD Bearish Crossover:
The MACD line has crossed below the signal line, suggesting a momentum shift in favor of the bears.
The histogram is turning red, further confirming decreasing buying pressure.
Key Levels to Watch:
🚀 Bullish Breakout: Needs to reclaim 19.52+ for a reversal.
⚠️ Bearish Target: Break below 18.52 (0.5 Fib) opens the door to 17.76 (0.618 Fib) and possibly 16.67 (0.786 Fib).
A breakdown from the neckline could accelerate the move lower. 📉 Watch for volume confirmation!
Would you go short on this setup? Let me know your thoughts! 👇
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