Major weakness detected on Loonie, if we begin from the close of last week, we got a beautiful sell signal in the form of a shooting star on the weekly timeframe, then if we continue to analyse the weekly fork, (black) then we can see that the pair failed to reach the upper paralell of the fork, which is a very bearish sign, it is a topping pattern and a major brakedown could be on the way, if we then further dial down in timeframe and have a look on the Daily fork, (blue) we can see that it did have a lot of difficulty to even brake inside the fork, not until the very bottom it managed to get inside it only to quickly fall outside it again, this is a first warning,
after this we can see mostly sideways price action but no real highs gained here, this indicate strong bearish pressure. then we can dial down to the purple fork on the 4 hour timeframe, and once again we can see price cannot reach the upper paralel, the bearish pressure is still present and this indicate the pair is in a down trend at this moment and has been for some time. on the purple fork it just broke the median line and should reach the lower paralel to start with, but we should expect a pullback to the median line even if it looks strongly bearish,
Andrew stated that when the median line is broken, there will be a pullback. I will take his word for it. and finally we have the great big fork in gold, this is the possible "new" fork we would see if price really brakes down, it is not in effect yet. but then it's median line will be the first target, this can be traded on all timeframes from monthly to 1 hour. I feel the top down approach is important to get a idea on the general direction of the market, and on top of the cream, we have a lot of bearish divergences on the MACD indicating the breakdown could be soon.
I suggest a short from the 4 hour or 1 hour, (same fork) median line Monday, then hold if for as long as you can. one thing that could be key is the 45 degree up trendline projected from the very low,
when placed at the higher low, it is still above it, but when that brakes, it will be no turning back.
after this we can see mostly sideways price action but no real highs gained here, this indicate strong bearish pressure. then we can dial down to the purple fork on the 4 hour timeframe, and once again we can see price cannot reach the upper paralel, the bearish pressure is still present and this indicate the pair is in a down trend at this moment and has been for some time. on the purple fork it just broke the median line and should reach the lower paralel to start with, but we should expect a pullback to the median line even if it looks strongly bearish,
Andrew stated that when the median line is broken, there will be a pullback. I will take his word for it. and finally we have the great big fork in gold, this is the possible "new" fork we would see if price really brakes down, it is not in effect yet. but then it's median line will be the first target, this can be traded on all timeframes from monthly to 1 hour. I feel the top down approach is important to get a idea on the general direction of the market, and on top of the cream, we have a lot of bearish divergences on the MACD indicating the breakdown could be soon.
I suggest a short from the 4 hour or 1 hour, (same fork) median line Monday, then hold if for as long as you can. one thing that could be key is the 45 degree up trendline projected from the very low,
when placed at the higher low, it is still above it, but when that brakes, it will be no turning back.