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$GS . ‘W’ face resistance

It has been challenging to get some wins off short position with this market that still refuse to retrace.

Here’s another setup that I am looking to short.

We can see from the chart that :

1. A ‘W’ is forming on $GS . However, it is facing resistance from the Chikou Span way back from November 2011.

2. At this moment, this is not a good time to establish a long position as it has run up by so much. We can see from the RSI that it is reaching ‘overbought’ situation and the Force Index has shown that it is in bullish territories for quite some time.

 

Next, we can see from the Weekly chart that $GS is still trading below the kumo; a sign that it is still bearish.

We can also see that the Chikou Span is about to hit the price level ‘forming the W’ follow by the Tenkan sen and Kijun sen on the Weekly Chart.

I will look for a short vertical call spread for $GS and hopefully, it goes as planned.

By iam802

Trend trading with Ichimoku