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DLavrov
Aug 11, 2016 9:39 AM

Divergence and Entry Level Short

S&P 500 index of US listed sharesFXCM

Description

Price bounced from a resistance level. RSI formed bearish divergence and confirmed price reversal. MACD falls and gives a signal for a possible short trade. ADX also starts falling and it's a signal that strong up movement probably is over. We can think about short trades on the daily chart. Place a pending order below MA20 and stop above the resistance level. Profit target is MA50 and if price breaks it, the next target will be MA100.
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