From the perspective of a technical trader using SMC (Smart Money Concepts), I support your SELL position based on the following three core arguments:
Market Structure:
The chart clearly shows a downtrend with a sequence of Lower Highs (LH) and Lower Lows (LL). The current price is in the Premium zone (higher price area) of the pullback, where sellers have the advantage to seek liquidity before pushing the price lower.
Rejection at Supply Zone:
Price has tapped into an Order Block (the red zone above) and failed to create a new higher high, while showing a clear rejection. This indicates that sellers are absorbing the buying pressure in this area.
Technical Confluence:
The reaction at the “Weak High” aligns with a potential reversal scenario. The expected target is the “Strong Low” or the Discount zone below, where liquidity may be filled—offering a very attractive risk-to-reward (R:R) for the short position.
Advice:
Place your stop loss (SL) just above the most recent high to protect your position from potential liquidity sweeps (stop hunts), which are common in this price area. Wishing you a successful trade!
TP: 0.02845
SL: 0.05118
RR: 3.87