Sell below 6907. Stop loss at 7196. Take profit at 6426.
Reason for the trading strategy (technically):
We see price testing its support turned resistance at 6907 (50% Fibonacci retracement, horizontal overlap resistance) where we expect to see it drop to its support at 6426 (61.8% Fibonacci extension, horizontal swing low support). We do have to be cautious of the intermediate support at 6523 (61.8% Fibonacci extension, horizontal swing low support)
Stochastic (21, 5, 3) is approaching its resistance at 90% where we expect to see a corresponding reversal.
Reason for the trading strategy (technically):
We see price testing its support turned resistance at 6907 (50% Fibonacci retracement, horizontal overlap resistance) where we expect to see it drop to its support at 6426 (61.8% Fibonacci extension, horizontal swing low support). We do have to be cautious of the intermediate support at 6523 (61.8% Fibonacci extension, horizontal swing low support)
Stochastic (21, 5, 3) is approaching its resistance at 90% where we expect to see a corresponding reversal.