The critical level as labelled has been an important support/resistance since 2004, 2005, 2008,2009,2015,2016,2017,2018,2021.
A beautiful head and shoulder pattern was set up since the July 2021. A break below the neckline should have a theoretical price target around 1.21600. However, S1 held strong leading to further upside.
The significance of the neckline can be seem from the slight rejection around 1.26786, however, bulls remain strong to push the price further only to be met by a strong resistance.
The strong resistance sent the price way below the neckline creating a bearish sentiment. However, bulls gained strength to push the price just above this support in the weekly chart.
At the moment we are in a battlefield where the bulls and bears have gone at each other for a while. The small candle on Friday shows the uncertainty from both sides. Monday will be crucial in deciding the direction. I believe a clear break above the neckline will put the bulls in charge until 1.30000, however a rejection of the neckline will push prices further to bottom support. Keep that has your take profit.
What makes this level most convincing is that the critical level crosses the neckline. This confluence greatly improves the credibility of the set.
What makes this set up so great? It is always nice to see a battle between bulls and bears. This battle has been going on for months, it takes a lot of strength to finally gain ground. When this is done, the price movement will be almost certain. With close stop losses above and below the neckline for both cases, your risk to reward ratios will be 1:4 or 1:5 which is awesome! Stay tuned for the direction tomorrow!
Have fun trading, do share your comments as well!
A beautiful head and shoulder pattern was set up since the July 2021. A break below the neckline should have a theoretical price target around 1.21600. However, S1 held strong leading to further upside.
The significance of the neckline can be seem from the slight rejection around 1.26786, however, bulls remain strong to push the price further only to be met by a strong resistance.
The strong resistance sent the price way below the neckline creating a bearish sentiment. However, bulls gained strength to push the price just above this support in the weekly chart.
At the moment we are in a battlefield where the bulls and bears have gone at each other for a while. The small candle on Friday shows the uncertainty from both sides. Monday will be crucial in deciding the direction. I believe a clear break above the neckline will put the bulls in charge until 1.30000, however a rejection of the neckline will push prices further to bottom support. Keep that has your take profit.
What makes this level most convincing is that the critical level crosses the neckline. This confluence greatly improves the credibility of the set.
What makes this set up so great? It is always nice to see a battle between bulls and bears. This battle has been going on for months, it takes a lot of strength to finally gain ground. When this is done, the price movement will be almost certain. With close stop losses above and below the neckline for both cases, your risk to reward ratios will be 1:4 or 1:5 which is awesome! Stay tuned for the direction tomorrow!
Have fun trading, do share your comments as well!