Loonie Hits Trendline Resistance

The Loonie could be at a pivot and we have a confluence of events.

The weekly chart shows the price rally past the figure and on to the trendline. We also have a Doji at the moment but ofcourse the week is not over. In addition we have divergence.

The daily chart is showing a Doji and the price has rallied to a 618 fib and has divergence.

The 4 hour shows a reversal candle at the figure and divergence.

The 1 hour shows a reversal candle at the figure and divergence.

The 15 minute has price resting on the 200 MA as I write this so we want to see what happens here as this is the first line of support on the weakest time frame.

I would add a RTC on the daily chart and analyze the breakout bar if and when that occurs for your longer term entry stop loss.

Short term, you would already be short if you are an aggresive trader and had spotted this set up today. You now want to see a breakout bar below the 200 MA and analyze that. On all the other major time frames the 200 MA is quite some distance away leaving enough room for profit should this break down further.

Regardless of this being a w4 or w1, look for fib reversal from the last low to last high for a reversal or continuation. However, if we break that trendline then a fresh analysis needs to be performed assuming it is not traders remorse.

For those of you who are aggressive traders and spotted this set up today, you will already be finishing the day with good profits so well done to you all. Although I did see the set up I was unable to take the trade in time today but managed to latch on to the latter part of this short and am now risk free on this position. This allows me to leave the trade open overnight without a concern of a loss and through to Friday if I do not get stopped out.


Chart courtesy of Advanced Get. Data provided by eSignal.

Forex Team Anne Chapman & Javid Shaik