Let's look at the daily chart
and try to understand possible price movements. The 1st thing which we have to note, a double bearish
divergence which was formed by price and RSI
. This is a reversal signal near the strong resistance level
. Based on the top at 3000.00 level and a possible top which market tries to form within these several days, we can draw a downtrend line. This resistance line is a barrier for possible up movement and from this line we should open sell trades on the daily and hourly charts. But at the same time we must be careful with short trades. The market still is in the up trend and it's possible that there will be a new attempt to reach 3000.00 level. For opening short trades there must be solid trading signals. The other entry level for short trades can be below the 2400.00 level. If price breaks the uptrend line and 2400.00 level, we'll have good confirmation that the market is going to move much lower. We'll open short trades below the support level
with profit target at 2000.00 level. If the market drops to 2000.00 and 1800.00 levels, it will be a good long opportunity.
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