I have now gone short on Amlin PLC (AML:LSE). I am taking the trade based upon the daily chart but with my entry and stop being based on the hourly chart. The daily chart has been trading in a channel since October 2011 and this was broken to the downside on 5th March. However, the price has now retraced to re-test the lower channel line. There is also a channel on the 1 hourly chart and the price is within a few pips of the top of this channel. Note that there is a bearish divergence on my MACD indicator (orange lines) where the indicator is making a lower low and the price is making a higher high. I am placing a very tight stop on this trade and that may stand me in good stead for a high RRR trade.
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