AUDCAD: 23.02.2017
Timeframe: D1
Downtrend movement with correction, forming a trend-confirming H&S figure. Breakthrough the neckline that is horizontal resistance which already became support.
Figure: reversed head & shoulders
Price action: 3 bullish candle bars, last one closed above the resistance
Technical indicators:
SMA50/200 - in positive formation
DeM - turns down above 0.7 - overbought market, that can lead to a short correction
CCI50 - keeps moving above 100 - strong buyers zone
SL: 1.005
Alternative scenario: if price goes back below the neckline support then the positive formation may collapse.
Jr_Trader_Ivan_Ivanov
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