Sell below 8349. Stop loss at 9103. Take profit at 6420.
Reason for the trading strategy (technically):
We see price testing its resistance at 8349 (100% Fibonacci extension, 38.2% Fibonacci retracement, horizontal overlap resistance) where we expect price to react off its, causing it to fall to its support at 6420 (horizontal swing low support). We do have to be cautious of the intermediate support at 7518 (horizontal pullback support).
Stochastic (89, 5, 3) has a lot of downside potential where we expect to see a corresponding move down.
Reason for the trading strategy (technically):
We see price testing its resistance at 8349 (100% Fibonacci extension, 38.2% Fibonacci retracement, horizontal overlap resistance) where we expect price to react off its, causing it to fall to its support at 6420 (horizontal swing low support). We do have to be cautious of the intermediate support at 7518 (horizontal pullback support).
Stochastic (89, 5, 3) has a lot of downside potential where we expect to see a corresponding move down.