Yesterday I wrote "Because we're at the previous swing high, it's common to find some resistance. So we may take a little dip this week and test the 8ema.". That's exactly what we saw today.
We opened a little higher this morning then dropped downward, but we closed above the 8ema. In fact, we didn't even touch it.
However, while we didn't form an official candle pattern, its similar to an Evening Star, and stochastics are high. Also, the ADX flattened out (see the middle subchart purple line). So we do have reason to be cautious.
If we continue down and close below the 8ema, this chart will look like a Double Top may be forming. Meanwhile, we need to hold our position.
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