I’m looking for a short position here. This area looks very clear.

Price has pushed hard towards the 4,840 to 4,880 area and is now directly within supply range for an extended period of time. Prices this high after a strong move like this usually mean one thing: Price must absorb liquidity before it can react otherwise.

The highs around 4,860 to 4,880 were filled with breakout buyers. This is where stop loss and past due orders exist. I expect the price to break out of this area and possibly even move above 4,880 to attract more buyers.

Once that happens, I’d like to see a stand-in. If the price shows rejection or a structural shift after peaking, that’s where I’d be interested in selling.

My first target is around 4,780, there’s an imbalance there waiting to be filled. If sellers intervene appropriately, I would look to continue the decline to 4,730 as price returns to the discount and meets higher time period support.

If the price breaks above 4880 and continues without any rejection, then the idea is considered invalid and I would stay away. This means the buyer still has control.

Now I just wait for the trap to happen before doing anything.

Do you want to sell or wait for confirmation?

Source link