Alright, you beautiful, battle-worn traders, let’s cut the fluff and get straight to the point. This morning’s pre-US open technicals are painting a picture – a picture of potential profit – and that means shorting opportunities. We’ve got three screaming setups across major markets, and I’m laying them out for you right now.
First up, a commodity – I’m seeing exhaustion and a clear breakdown pattern forming. Don’t get greedy, but this one’s got some serious downside potential.
Then, in the FX space, we’re looking at two currencies primed for a pullback. The bulls are tired, the momentum is shifting, and frankly, they’re about to get wrecked. Seriously. These aren’t just textbook patterns; these are opportunities to capitalize on market fatigue.
Let’s quickly dive into the technicals underpinning these setups. Understanding these concepts is crucial.
Firstly, identifying exhaustion gaps is key. These occur after a strong bullish move, leaving a gap that quickly fills, signalling a reversal.
Secondly, look for bearish divergences on oscillators like RSI and MACD. This indicates weakening momentum despite continued price increases.
Finally, pay attention to key resistance levels. When price fails to break through these levels, it often leads to a sharp reversal. Remember, trading isn’t gambling, it’s about calculated risks based on solid analysis. And these are calculated risks, folks. Don’t just blindly follow; do your own due diligence, but keep these trades on your radar. Let’s make some money!
