A well-defined bearish wedge flag on the 4-hour chart presents a strong short opportunity. Within this setup, a double top formation on a smaller time frame adds further bearish confluence. The price has reached the 61.8% Fibonacci retracement level, while the weekly chart reveals the 50-period moving average acting as a significant resistance level, touched from below.
Momentum is visibly weakening, as indicated by the RSI. The stop loss is set above the wedge, aligned with the 78.6% Fibonacci retracement level, and the reward target is at the bottom of the wedge. This trade offers an attractive Risk-to-Reward Ratio of 2.45, making it a compelling short signal.
Regardless of whether the price transitions into a downtrend or consolidates into a trading range, this setup provides a solid opportunity for a short position.
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