Potential Reversal upon Closing Above EMA(5)

31 Ara 2017

I can see a potential Long setup for EUSTX50 index. Couple of things that I observed:
1. Price is currently retesting EMA(200) and this is also a resistance-turned-support zone (back in April 2017).
2. A divergence observed between the chart and RSI(14), as chart is making lower low, whereas RSI(14) is making higher low.

If price can close around 3530 (which I roughly calculate should be when it close above EMA(50)), then I may open a Long position. Otherwise, no trade on this index.

1 Oca 2018

Not

Typo, it's EMA(5), not EMA(50)

5 Oca 2018

İşlem elle kapatılmış

Closed the trade with profit for now.