A three year bullish cycle might be close to end. While the monthly chart is still bullish, the daily chart is getting bearish. Back to monthly chart, I have stressed out two bearish patterns. The first one has failed, while the second one is still in formation. Obviously, there are now lower-highs and lower-lows to define an uptrend. However, the monthly chart is warning us about a possible upcoming change in trend. Only above area 22, the uptrend is again in place. In absence of further strength, I will be over sizing short trades rather than long ones.
Commentaire:
Errata Corrige: I meant: "Obviously, there are not lower -highs and lower- lows to define a downtrend. " However, the monthly chart is warning us about a possible upcoming change in trend.