2 HOUR ANALYSIS - The current market sentiment indicates a pronounced bearish trend, particularly highlighted by a significant rejection around the resistance zone of 2879-2885. This rejection has set the stage for the price to exhibit a pattern of lower highs and lower lows, which is a clear indication of downward momentum in the market. Traders should closely monitor these price movements as they reflect a growing bearish sentiment among market participants.
SELL REASON
BEARISH STRUCTURE & TREND
The market's structure is firmly bearish, characterized by a series of lower highs that fail to break above the previous peaks, coupled with lower lows that reinforce the downward trajectory. This structural analysis points to a lack of buying pressure, suggesting that sellers are in control. The resistance level at 2879-2885 plays a critical role in this analysis, as it has proven to be a significant barrier for price action, leading to a rejection that further cements the bearish outlook.
Additionally, there is a possibility of a liquidity grab occurring in this area. A liquidity grab typically happens when the price briefly spikes to trigger stop-loss orders above the resistance level, only to reverse sharply afterward. This behavior is common in volatile markets and can provide a lucrative opportunity for traders who are positioned correctly.
TARGETS
Given the analysis of the current price action and market structure, the following targets have been established for potential profit-taking:
Target 1 is set at the support level of 2842, which is expected to act as an initial area of interest for buyers attempting to enter the market. A break below this level could signal further downside potential.
Target 2 is identified at 2811, which represents a more significant support zone that could attract buying interest. However, if the price continues to decline, this level may also be breached.
Final Target is positioned at 2780, which is anticipated to be a critical support level. A move to this target would indicate a strong continuation of the bearish trend, and traders should be prepared for potential volatility as the price approaches this zone.
Trading idea - The optimal trading strategy at this juncture is to sell at the established resistance zone of 2879-2885. This strategy is grounded in the analysis of the current market conditions, providing a high-probability trade setup. Traders should ensure that they are employing proper risk management techniques, such as setting stop-loss orders just above the resistance level to protect against unexpected price movements.
Good trading
Comments