Contrarian play. Too many LONGS on the SSI. I think they will retest the lows and shake out the bulls before letting this thing go up. Tight stops
divergenge with RSI higher lows, ATR1 higher lows and lots of stops to run on those bears up that top
The real battle has been fought at the upper resistence. I think the winners may the BULLS. HedgeFund have gone LONG on the CAD and I think they are now sucking in some sellers before attaching again the resistence above. We will ook for an entry LONG at the yellow circle.
The Lind Rashke oscillator points a divergence in the 3/10 oscillator which indicates that this think is going south.
This is a test trade to check the existence of a Wolfe wave here. A bit strecthed and so there is an high chance that I'm seeing here what "I want to see" which is the ultimate sin of all pattern traders. But I want to look at the Wolfe theories. In this case the leg down kinf of resemple a Wolfe wave but it is not simmetical enough so it may fail. In any...
this seems to me a text book example of MM manipulation before a trend switch from SHORT to LONG. There has been a box of volatility compression, a long fake to catch the money of the early LONGS and quick dive SHORT of the trapped bulls. In the mean time longs were added and now the impulse up is going to run through all resistances. Going LONG.
let's see if there is an other lef of the 3 waves implulse down
reaching resistance, on shrinking candles (loss of momentum) and divergence with the ROC2 as well as break of the trendline of the ROC2.
Hopefully the retest of the W neckline will turn into a LONG
SHORT the volatiliy and retest of resistance
Let's see if it works out. If so we revert to Long at the W neckline
Area seems to be strng resistance and after 2 rejections the next one may be the good on for a short
To me it looks like there has been distrubution (selling by istitutions) and now weak hands cannot hold up the CAD. Wait for selling climax and evaluate if buyers are coming in
Monthly in clear uptrend, as well weekly. The daily suggests a possible rejection at resistance and an healthy retracement to support. We are looking in that area a possible Long entry. Let's what happens....as usual...PATIENCE is the name of the game