Price is in a bearish trend on the H4 chart. Price closed below the first resistance level at 1420.74, which is also the location of the 100% Fibonacci line and the prior swing low. For the previous four weeks, price has been consolidating between the first support, where the 0% Fibonacci line is placed, and the first resistance. Price is also moving within a short term bullish channel.
Trading Recommendation
Entry: 1325
Reason for Entry: Immediate entry since price is at the bottom of the bullish channel and has the potential to move back up within the channel.
Take Profit: 1490.13
Reason for Take Profit: 78.6% Fibonacci line and 50% Fibonacci line are located there.
Stop Loss: 1220.21
Reason for Stop Loss:
0% Fibonacci line and previous low are located there.
