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Bearish confluence vs Bullish trend...


This $MZOR weekly chart is rather interesting... To start with, a long bearish pin at the top of an uptrend. This particular area where the opening kind of matches the closing (to form that particular pin) happens to be at a Fibonacci level. The 261.8 extension from the 2014 high to 2016 low retracement to be precise.

If you look at the RSI, you will notice that it makes a lower high while Mazor Robotics' price is making a higher high. That "non-confirmation" is called a bearish divergence.

Enough confluence to go short?

Well... there's that one thing to keep in mind, which is... the primary trend is still up. Shorting would be going against the trend which is never a good idea, unless you are trading short term and use stops (as always).

#MZOR

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