$LPT 1h:
The price is clearly in a downtrend right now, and all indicators support this. A short position looks logical, especially if there’s a fake-out in the 5.800 – 5.850 zone — that would be a good selling opportunity.
If I were to trade, I’d wait for the price to bounce into that resistance zone, and once liquidity is collected and a strong rejection with a candle reversal pattern appears, I’d enter a short position.
My targets would be 5.572 first, then 5.015. The stop-loss would be placed just above the entry, slightly above the recent swing high.
If the price unexpectedly breaks above 5.900 quickly, then the bearish scenario becomes invalid and a reassessment is needed.
