Short Term Trading Week Starting: 04 Feb, page-138

There is not always a clear signal, but in this case there was a signal of sorts. You'll hear many chartists saw to make sure you look left, and this is why. I'll use my own chart here because you need to go further back.


In this case, the gap, and the earlier pivot point of S/R it bounced off was a strong indicator it would struggle to break 4.60. I would be keeping a close eye on the volume watching out for selling pressure, as it tests the Support/Resistance again. If it were me I'd be watching for signs of breakdown or breakout if I were considering an exit. Right now I can make fairly equal bull and bear cases.