A nice channel has developed. Resistance offered by the upper channel line coincide nicely with the Fibonacci 61.8% retracement point. Potential to short either at the level (slightly more risky) or to short just after if price respects the resistance (less risky).
Take profit at lower end of the price channel could be set for a nice 14:1 risk reward ratio, however, earlier exits exist depending on price action and potential news events.
Price action looks determinedly bullish . Potential exists for upper channel breakout, so here a small risk is placed. If the price does break out, the option exists to short again if the price falls subsequently, re-entering the channel area.
Take profit at lower end of the price channel could be set for a nice 14:1 risk reward ratio, however, earlier exits exist depending on price action and potential news events.
Price action looks determinedly bullish . Potential exists for upper channel breakout, so here a small risk is placed. If the price does break out, the option exists to short again if the price falls subsequently, re-entering the channel area.
