This is my personal point of view and no financial advice. Weekly chart : – We rejected the weekly high (111.000) which acts as a major supply and demand zone.
– We want to see reversal pattern first before we take any short setups.
– We broke the last weekly higher low (little red candle which acts as a institutional candle) so we shifted from bull market to a potential bear market making lower highs and lower lows.
– We received a weekly head and shoulder pattern.
– We received a clear supply and demand zone at the shoulder 1 region. Daily and 4H : – We can see the head and shoulders much clearer on the daily chart .
– One thing that bothers me is that we are testing the shoulder 2 region for the second time. I believe that banks and institutes are adding oil to the fire before making their move to the downside. Why is that? When we break above the supply and demand zone, all the retail traders will go long, banks and institutes will say thank you ( oil on the fire) and we go down.
Also when you look to the 109.800 region you can spot a little daily institutional candle ( IC ) which acts as a magnet ( oil on the fire). – We are currently rejecting the shoulder 2 region for the second time, and the IC as well. I will not enter this position yet, I want to see more conformation in the form of a break of the last daily HL and a daily continuation pattern such as the bearish W pattern. I strongly believe that we will reach the weekly take profit at the -27 Fibonacci (106.600) and my end target would be the beginning of the correction where this uptrend started at the 102.600 region. 650+ pip trade? Again this is no financial advice this is my point of view of the market.