Hi Traders! UK100 triple cycle provides sell opportunity for us. A detailed analysis of this setup is as follows:
UK100 H4 Chart:
On the H4 chart the price which is moving higher is creating a triple cycle, currently the third leg of this triple cycle is forming at the moment. Based on the fibo extension levels of the two legs we have the 161.8 fibo extension level of the first leg and the 61.8 fibo extension level of the second leg coincides on the same zone, thus forming a magnet zone for us. We have a bearish divergence that has formed which we may consider as a confirmation for bearish pressure. We also have a perfect uptrend line that has formed and the price is respecting this uptrend line so far. Hence we may now expect the price to move higher and reach the magnet zone first, then we may expect a bearish reversal to happen from there. We may then start looking for sells with the breakout of the uptrend line.
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.Advertisement
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