Okay so the chart you can see has a fairly steep channel and that's probably what you've noticed first. However, let's look at the wider picture.
The downtrend has been in place since the 5th December 2014. On the 28th of December we saw the trend take shape as the lower-high formed a trend line with the 5th Dec. price. On the 2nd of Jan we saw the price come close to the trendline before a big sell-off.
Since then there has been two major support and resistance levels; at around 180.250 and 175.750. The support at 175.750 has formed a triple-bottom which caused the price surge; this resisted at that 180.250 line but eventually broke through and then found that resistance as support. This price increase was steep and thus formed a steep channel. A triangle has also taken shape and is coming to a close.
More interestingly, the price once again bounced off that long-term trendline which included a small breakout but ultimately a price rejection before continuing back down Therefore the channel should soon breakout and we'll hopefully see a retracement down to that 180.250 S/R level; where there are previous closes and the cloud as confluence.
This should be a straight forward trade and I've calculated a 5:1 Risk/Reward which is shown on screen.
The downtrend has been in place since the 5th December 2014. On the 28th of December we saw the trend take shape as the lower-high formed a trend line with the 5th Dec. price. On the 2nd of Jan we saw the price come close to the trendline before a big sell-off.
Since then there has been two major support and resistance levels; at around 180.250 and 175.750. The support at 175.750 has formed a triple-bottom which caused the price surge; this resisted at that 180.250 line but eventually broke through and then found that resistance as support. This price increase was steep and thus formed a steep channel. A triangle has also taken shape and is coming to a close.
More interestingly, the price once again bounced off that long-term trendline which included a small breakout but ultimately a price rejection before continuing back down Therefore the channel should soon breakout and we'll hopefully see a retracement down to that 180.250 S/R level; where there are previous closes and the cloud as confluence.
This should be a straight forward trade and I've calculated a 5:1 Risk/Reward which is shown on screen.