Possible short term trade 1hr/4hr timeframesCurrent Style of Trading: 4hr/Daily/Weekly Swings.
Sentiment:
Longterm: Bullish
Short-term: Bearish
- Please for long term daily and weekly chart info check:
Observations:
4hr:
Bear volume is considerably higher on pullbacks than the bulls on the bounce.
Immediate support at $15.53 resistance at double top $16.84
Failing to establish a higher low compare to 16.84 (double top) followed by a break of $17.51(previous daily high) will keep the bears in control, a break of $16.84 will increase the odds of upcoming daily consolidation.
1hr:
Uptrend still intact after the bounce that took place from $15.53.
How did I spot that a bounce was about take place? A bounce was clearly about to take place which was signal by the oversold RSI and the bullish piercing pattern signaling a possible reversal, confirmation was given by trading above piercing pattern. Please feel free to share your own observation on this bounce and how did you know it was most likely going to take place in the comment section =)
(I did not enter a position given that I wasn't in front of my computer)
Clear double top at $16.84, losing the 1hr Higher high/ higher low pattern will indicate that the 4hr chart is ready to pull back possibly to around mid to high $15 range where the SMA50 is located right above the current low of $15.53
A break of $15.53 will indicate a shift in momentum on the 4hr chart signaling further downside will most likely take place on the daily & weekly chart.
Possible play:
I am currently interested in the 4hr chart setup highlighted by the dotted lines.
The double top is clear, per technical analysis we know that double tops tend to mark a reversal in the market.
I'll be looking to scale into a small position between the high to mid $15 range on 1hr RSI oversold levels looking for a quick bounce to the top, possibly selling up to 75% on the way up to retest the double top price range (If this trade take place be aware that it is unlikely that we will retest the double top falling short, so Ill be selling way before we reach the top for a 2 to 1 risk to reward ratio.
Disclosure:
Please keep in mind that this are simply my ideas on the market, I am in no way shape or form qualified to give anyone any financial advise. All I'm looking for is to become a better trader with time and the only way too do this is to post what I am looking at and take criticism from those of you that been doing this for a very long time, having said that please feel free to call me out on any mistakes, or incorrect analysis the best way to learn is from each other as a community.
