Beware of Shorting OpportunitiesAs we continue to analyze the market, it's become clear that avoiding bad trades is just as important as finding the next big one. This is particularly true when looking at the bottom 2 charts of NZDJPY's daily and weekly charts.
On the daily chart, we can see that the Bearish Deep Gartley Pattern is over-extended, meaning it took longer than expected to complete the trading setup. As a result, the market may not respect the level and could bash through the resistance level.
On the weekly chart, we also see that the Bearish Shark Pattern retest, doesn't give us an RSI divergence. Once again, the market may extend further before any significant retest.
Despite all of this, if you're still interested in shorting the market, do it with caution.
On the 4-hourly chart, waiting for the market to retest at the 90.03 level could attract price-action traders to jump in for the counter-trend move.
Personally, I prefer to head in for a buying opportunity at the key support level of 89.05. My initial stop-loss would be at 88.67 (-38 pips) or approximately -380USD/lot. The first target is seen at 90.08 (+103pips) or approximately 1,030USD/lot.
Remember, it's important to plan your own trade and never follow any trader blindly. Let's continue to monitor the market closely and make informed decisions.
