Shorting final leg of (possible) H&S pattern

29 Mac 2016

As the title states, shorting the last part of what looks like a H&S pattern that is about to get completed (if 1.44 holds).
Aiming for at least neckline of (possible) H&S at 1.4065 with stop right above supply zone, 1.4410. Entry at 1.4380 - 1.4370.

Other elements to support this short are:

• Hidden bearish divergence on both MACD and RSI on 4H TF;
  
• Both MACD and RSI oversold also on 4H TF;
  
• Supply zone at current area (1.4380)
  

If price indeed moves lower and tries to complete the H&S pattern possible continuation of short till 1.36.

6 Apr 2016

Nota

Price went to test the neckline but didn't break lower. It in fact bounced very neatly off of it. Stop was pretty tight but if you could manage a bit bigger risk, this was a good trade.