#AUDCAD potential bullish continuation
As you can see in the 4-hour timeframe chart, there are several different bullish confluences that we are currently observing.
Firstly, the price is retesting a bullish trendline that has supported this recent bullish move since October 16th. Secondly, the price is also finding support from the 200EMA, and the price formed a nice rejection off this overlay indicator. Thirdly, we have bullish divergence between price and the stochastic oscillator, suggesting that momentum has shifted to the upside. Also, from a market structural point, the price is forming higher highs and higher lows and is currently testing the previous resistance, which has now turned into support.
After observing all these bullish confluences, the price then formed a bullish engulfing candle, suggesting that bulls are active in the market.
To participate in this market, there are two things that we can do. Either we can engage in this market by executing a buy order at the current price or place a buy limit order at 50% of the bullish engulfing candle, of which I prefer to use the second method.
Firstly, the price is retesting a bullish trendline that has supported this recent bullish move since October 16th. Secondly, the price is also finding support from the 200EMA, and the price formed a nice rejection off this overlay indicator. Thirdly, we have bullish divergence between price and the stochastic oscillator, suggesting that momentum has shifted to the upside. Also, from a market structural point, the price is forming higher highs and higher lows and is currently testing the previous resistance, which has now turned into support.
After observing all these bullish confluences, the price then formed a bullish engulfing candle, suggesting that bulls are active in the market.
To participate in this market, there are two things that we can do. Either we can engage in this market by executing a buy order at the current price or place a buy limit order at 50% of the bullish engulfing candle, of which I prefer to use the second method.
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Price changed a 4H bearish market structure to bullish.
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price is experiencing a bearish corrective move after hitting our first profit target. Now we are looking for price to go higher from this area again.
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Both target hit 👌