Back in Jan I posted an idea for U/C bears to watch on radar for longer term. What I had posted was to watch for a lower high after a double top & lower low. Well “2-1/2 months” later U/C may be in that position up near a 78.6 Fib. Keep in mind that price has respected the longer term 50% fib from the 2016 high (in white circle) so if this current lower high holds its on a longer term outlook. Also look at a weekly chart and you’ll see this pair is in a long term correction for approx 1 year as it shows overlapping sideways price action so its bound to break out at some point in time.
April started out basically at the M-M3 so M-M1 could be a target for April.
This level could also be a lower high scenario at the 78.6 fib in white.
Watch for the major support to be taken out and that would pull the 21-55 macd below ‘0’ line to confirm the monthly stoch cycle.
If price heads up to the blue X then bulls could be the winner on a breakout should that occur and take out the 50% fib or top of range.
Price is in the weekly profit zone.
A double top could be in place.
Trade plan shorting OB stoch cycles if bearish on U/C.
Watch for the 21-55 macd to fall below ‘0’ line to confirm a daily stoch cycle if the minor support is taken out with divergence in place.
If you’re a bear on U/C this could be a good zone to get short and hold it. Watch to see if oil rallies as well.
Lets see how it plays.