Yesterday's price action triggered a NEW LONG BLACK CANDLE which closed below the daily clouds @ 39'175 (intraday low @ 38'590)
Currently below both the TENKAN-SEN @ 41'174 and the MID BOLLINGER BAND @ 40460
RSI below 50, @ 44.82
LAGGING LINE testing the KIJUN-SEN !
And last but not least, yesterday's closing was also below the former downtrend resistance (red line !)
Today's price action will be very important and will validate or invalidate 2 important things :
1) THE CLOUDS SUPPORT BREAKOUT
2) THE FORMER DOWNTREND RESISTANCE LINE WHICH BECAME THE NEW SUPPORT (PULLBACK)
A DAILY CLOSING BELOW 38'500 would confirm further downside towards, firstly the former daily congestion zone around the 37'000-36'700 area ahead of the former lows 34'324-32'950.
On the upside, a first breakout of the TENKAN-SEN @ 41'174 would temporary neutralise the ongoing downside risk and then should be confirmed by the top daily clouds @ 42'524 (this latter level has already been mentioned yesterday)
4 HOURS (H4)
Currently below :
1) The ongoing downtrend line
2) The Mid Bollinger Band
3) The Kijun-Sen
4) The Tenkan-Sen
5) THE CLOUDS
LAGGING LINE TESTING THE CLOUDS SUPPORT AREA AND ATTEMPTING TO CROSS UNDER !
RSI far below 50, @ 28.42 (No bullish divergence yet in this H4 time frame), still converging to the downside
Watch the clouds area (39'290-40'635) as a good indicator for upcoming trading hours as an upside breakout of the TOP OF THE CLOUDS (also the KS) would reopen the door for a potential upside towards the cluster of Kijun-Sen (41'961) & Mid Bollinger Band (42'201).
As usual, watch shorter intraday time frames to get glues and early signal (such as RSI bullish divergence) which will help you to validate or invalidate the implications previously mentioned in longer time frames.
Finally, do not forget to put in place a strict and disciplined RISK MANAGEMENT when you act TACTICALLY in STRATEGICALLY COUNTERTREND (RISK REWARD RATIO depending on your time frame trading action !)
IRONMAN8848 & Jean-Pierre Burki
Currently below both the TENKAN-SEN @ 41'174 and the MID BOLLINGER BAND @ 40460
RSI below 50, @ 44.82
LAGGING LINE testing the KIJUN-SEN !
And last but not least, yesterday's closing was also below the former downtrend resistance (red line !)
Today's price action will be very important and will validate or invalidate 2 important things :
1) THE CLOUDS SUPPORT BREAKOUT
2) THE FORMER DOWNTREND RESISTANCE LINE WHICH BECAME THE NEW SUPPORT (PULLBACK)
A DAILY CLOSING BELOW 38'500 would confirm further downside towards, firstly the former daily congestion zone around the 37'000-36'700 area ahead of the former lows 34'324-32'950.
On the upside, a first breakout of the TENKAN-SEN @ 41'174 would temporary neutralise the ongoing downside risk and then should be confirmed by the top daily clouds @ 42'524 (this latter level has already been mentioned yesterday)
4 HOURS (H4)
Currently below :
1) The ongoing downtrend line
2) The Mid Bollinger Band
3) The Kijun-Sen
4) The Tenkan-Sen
5) THE CLOUDS
LAGGING LINE TESTING THE CLOUDS SUPPORT AREA AND ATTEMPTING TO CROSS UNDER !
RSI far below 50, @ 28.42 (No bullish divergence yet in this H4 time frame), still converging to the downside
Watch the clouds area (39'290-40'635) as a good indicator for upcoming trading hours as an upside breakout of the TOP OF THE CLOUDS (also the KS) would reopen the door for a potential upside towards the cluster of Kijun-Sen (41'961) & Mid Bollinger Band (42'201).
As usual, watch shorter intraday time frames to get glues and early signal (such as RSI bullish divergence) which will help you to validate or invalidate the implications previously mentioned in longer time frames.
Finally, do not forget to put in place a strict and disciplined RISK MANAGEMENT when you act TACTICALLY in STRATEGICALLY COUNTERTREND (RISK REWARD RATIO depending on your time frame trading action !)
IRONMAN8848 & Jean-Pierre Burki
