Analysis.
Since the decline from 01-02-2016 to 11-02-2016, price retraced, and managed to climb to 618fib, it got caught between converging lines, a sign of weakness, and divergence in macd formed, I was looking to short right at 618 level, but as i was at the limit of open trades, i didnt take it.. Now its breaking out of the consolidation zone, and it still offers a 3-1 risk to reward.
Plan
Short with stop above the zone where price consolidated for two days, Targets are previous swing low, and support trendline from daily.
Since the decline from 01-02-2016 to 11-02-2016, price retraced, and managed to climb to 618fib, it got caught between converging lines, a sign of weakness, and divergence in macd formed, I was looking to short right at 618 level, but as i was at the limit of open trades, i didnt take it.. Now its breaking out of the consolidation zone, and it still offers a 3-1 risk to reward.
Plan
Short with stop above the zone where price consolidated for two days, Targets are previous swing low, and support trendline from daily.
Trade active:
Still on this trade.
Comment:
stop loss moved to 0.972
Trade closed: target reached