Setting up for a Head & Shoulders reversal pattern
Left shoulder, Head, and Right shoulder all in place with Neckline Shown.
Target and stops noted
Further confirmation from OBV Higher at peak A Than B
Obv increases on decline of Head and decreases on Advance of C
looking for retracement into 0.382 lvl which also corresponds with our trend line
TP will be the 1.272 extension
Stop is just above last high
Limit just above TP
Risk reward Ratio 2.87
Short Opportunity,
looking for quick retracement to 0.618 fib (Also strong resistant/Support zone)
if closes below A then we can look for target towards 1.272 extension B
Chart looking messy which isn't great!!
Breakdown:-
Can see the downtrend, with the trend line see constant Tests,
We saw the breakout to the 0.618 fib, & Stochastic around the 80 Lvl
Looking for breakout to Target Zone, Entry 1.05798, Stop 1.05983, Limit 1.05362 Ratio 2.6
Notice lower highs and lower lows,
Come from area of support,
We will see the candles go into the 1.5000 support level over the coming days,
If closes below, We could see a big breakout to the downside!!
currently setting up for a ranging Trade,
Remember the importance of Placing a stop loss. I would place around 1.21348 area
Target point just below resistance
Constant testing of Trend Line,
Trend line has been broken so waiting for the retest,
If retest closes above the trend line then we can look towards TP1
