We probably topped near the descending resistance of the falling channel on the weekly, while Stochastic coming off overbought area. The price is also about to complete a small double top formation at that resistance(The pattern will be confirmed only if we close this week below the neckline at 8.2889).
As we are approaching the shorter term rising trend line, we could see a a bounce towards the broken neckline for the double top. It could be appropriate to short near neckline, in anticipation for a major break below the rising trend line and towards the channel bottom. Failure of setup would be on a break above the channel resistance.
An alternative, more conservative entry could be on a break below the rising trend line, however, that would yield a lower risk-reward ratio.
As we are approaching the shorter term rising trend line, we could see a a bounce towards the broken neckline for the double top. It could be appropriate to short near neckline, in anticipation for a major break below the rising trend line and towards the channel bottom. Failure of setup would be on a break above the channel resistance.
An alternative, more conservative entry could be on a break below the rising trend line, however, that would yield a lower risk-reward ratio.