All the three conditions that we usually look for are checked:
- Divergence between the price (which moves sideways) and the RSI Exhaustion (which moves down)
- Bullish exhaustion in the RSI Exhaustion
- A confirmed top
Moreover, the price is currently below a major resistance indicated by the Levels and Zones.
Not only this is a fantastic condition for a high probability trade, but also, we can exploit the resistance to set our stop loss just above as be sure to be extremely protected both by the sell zone and by the resistance itself.
Setting the target is even simpler because, once again, we exploit the Levels and Zones and set it down where a major support is currently at.