The setup is very clear in this case. We have:
- A higher bottom
- A higher low in the RSI Exhaustion (which means that the RSI Exhaustion supports the price movement)
- Bearish exhaustion
The only concerning thing is that between our entry price and the expected target, there’s a major resistance level displayed by the Levels and Zones. Such major resistance poses a potentially big problem in reaching the target because it is very likely that it will slow down and eventually stop the price as it approaches the sell zone and the resistance as well.
Because of this analysis, we set our target right at the resistance so that we dramatically increase the chances of being correct and we get involved in a very safe trade.
Trading safely is the best way to go for consistent profits and, if we’ll get it right, then it’s going to be a 2x profit.