I am currently studying for my finals but as usual i cant get my eyes of the charts. I will do todays analysis differently as I got some messages urging me to add a little more explanation for people that can really interpret charts that well yet. This trade utilises the Weekly and daily chart for its analysis. Enjoy!!!

1. Weekly Chart: In the weekly chart below the blue arrow extending from the bottom of price up to the top represents a bullish run from May 2012 up until March 2013 . After it topped there was a retracement from its high of 105 ish (represented by the red arrow pointing downwards) to its current level. This retracement formed what we chartist like to call a Descending channel . The Descending Channel is represented by the two green trendlines that are parallel to each other.You can find more on chart Patterns here . This scenario present an opportunity where a break of the “upper Descending channel trendline” will signal a resumption of the uptrend from May 2012 up until March 2013 and end of the current retracement. This is the signal we will be waiting for in order to go long.

Lets view the charts on the Daily timeframe and understand what implications it has on the weekly analysis.

2. Daily Chart Analysis: On the Daily chart the red arrow pointing downwards represents the present downtrend which has lasted from March of 213 till Now. This move also represent the current retracement on the weekly chart which formed a descending channel. In the chart we can also see two yellow trendlines which form a rising wedge. A rising wedge is a chart continuation pattern that indicates a bearish trend is currently retracing and a break below the lower trendline of a wedge means further downward movement. Also we can see a classic Head and Shoulders formation represented by the 3 converging arrows on the chart. A head and shoulders pattern indicates a downward move is in the works as buyers couldn’t break the previous high which is called the head. Currently I am waiting for a break below that lower yellow TL for a SHORT entry as of now. If it holds you can refer back to the weekly analysis for what to do. If this is a very high probability short.

Trade Idea(If wedge breaks yellow Trend lines): Short on next retracement on Hourly or 4 Hour Chart.This is a long term trade so Take profit and Stop Loss will depend on your risk appetite.

Trade idea (If descending channel breaks green Trend lines): Go long on retest of trend line after initial break. Target 1: 105.434 T2: 124.33..

Enjoy the trade and thanks for reading. If you liked this PLEASE SHARE on your Social networks.