Strategy; Candlestick pattern/ Chart pattern/ breakout/ trend following
Price fail to test and break the high of 14/12/2015 which is 133.515, given us signal to go short as the bears are preparing to take more charge.
After a sharp upside retracement (129.718 – 134.551) of a previous downward move (136.939), yesterday’s candlestick formation was shooting star which signifies more downward move to 38.2 Fibonacci level.
Meanwhile, we expect today’s range to move between 133.283 – 132.429, but on medium term, we will be looking forward for price to break and close below 23.6
Fibonacci level, and if it does, we will be looking to add more offer to 129.629.
In the main time, we are expecting more momentum for price to break out of triangle and this will give us long term outlook.
126.064 price level was a previous low which was on 14/4/2015, there might be a possibility of price reaching that level if 23.6 Fibonacci level was broken then it will be making way for price to get out of triangle which means the next target in view will be 126.151.
However, if price bounce on 38.2 Fibonacci level then we will be waiting to see it’s reaction on 50.0 Fibonacci retracement level to determine the next move.
As for today, 134.521 is our major resistance and 129.6 is our major support, so technically we are looking forward for a bearish day and more subsequent bearish day with little retracement.
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