We have a high probability trading setup which is very easy to identify because:
- The price and the RSI Exhaustion are diverging
- The RSI Exhaustion is bullish exhausted
- There is a top (and it’s just below a major resistance!)
The stop loss is very easy to set while the target level is a bit tricky.
The most obvious target would be all the way down to the support level at the bottom, however, by making a clear and simple price action analysis we identify three minor levels at which there is some interesting structure and, in particular, the lowest one appears to be the best one among the three where to place the target.