Hey traders,
This move is looking quite similar to the last triangle that formed on this downward channel. Notice how the triangles look exactly alike in shape and size. As we are at the top of this triangle it would be more probable to touch back down to the bottom end of it.
The benefit of entering short here is that you have the historic price action on your side, as well as a bearish trend. (Indicated by the Ichimoku Cloud, and 200MA)
In my opinion, price will touch the green box at some point, but if you take a look at the last time it touched the major purple support line, price was only there for a brief 1-2 days.
Entering a position now could be a profitable move, just be careful of price breaking back up through that red resistance line, before ever going down. To me, that is unlikely.
Best of luck,
Dylan
Balkoins
This move is looking quite similar to the last triangle that formed on this downward channel. Notice how the triangles look exactly alike in shape and size. As we are at the top of this triangle it would be more probable to touch back down to the bottom end of it.
The benefit of entering short here is that you have the historic price action on your side, as well as a bearish trend. (Indicated by the Ichimoku Cloud, and 200MA)
In my opinion, price will touch the green box at some point, but if you take a look at the last time it touched the major purple support line, price was only there for a brief 1-2 days.
Entering a position now could be a profitable move, just be careful of price breaking back up through that red resistance line, before ever going down. To me, that is unlikely.
Best of luck,
Dylan
Balkoins