A bearish divergence pattern on RSI has formed up as price entered the resistance zone. This is a potential sign of an impending pullback or correction to follow. RSI also gave a sell signal as it crosses below the overbought territory.
A 3-Inside Down candlestick pattern also formed up at the resistance zone which is considered as a high reliability reversal pattern.
*Selling pressure has already started but still requires confirmation (Chaikin Money Flow).
Trading Plan
- Take some profit or scale down (trail stop the remaining position).
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