Firstly we are going to analyse what happened last week !
Indeed, the failure to recover, at least, above the middle level
of the previous candle (long black candle) confirmed that, the " BEARS " keep their advantage over the " BULLS ", at least,
for the time being !
In addition, a shy weekly closing @ 37'942 slightly above the weekly clouds bottom level (@ 37'360) is also showing a growing uncertainty and support fragility.
So what next ?
WEEKLY (W1)
NO SECRET... WATCH THE CLOUDS !
Indeed, the weekly clouds area (37'360 - 42'570) should be seen as a very good indicator for the upcoming trading sessions, as a breakout of one of those levels would have the following
implications :
ON THE UPSIDE :
A weekly closing above 42'570 (also the level of the Tenkan-Sen !) would confirm a bottom in place, calling for higher levels towards the psychological 50'000 area (Mid Bollinger Band (50'782) and Kijun-Sen or
Base line (50'975)
ON THE DOWNSIDE :
A weekly closing below 37'360 (weekly clouds bottom zone) would open the door for, firstly the former low @ 32'950 ahead of the psychological 30'000 support level; do not forget that the STRATEGIC TECHNICAL TARGET
REMAINS AT 28'600 WHICH SHOULD BE SEEN AS A VERY, VERY, VERY IMPORTANT LEVEL AS IT COULD BE :
A ) The double top trigger level which if broken (on a weekly closing basis) would have great heavy bearish implication in opening the door for much lower levels !!!
B) A potential double bottom, which if the BTC hold would give nice buying opportunity
DAILY (D1)
Ongoing downtrend still alive, caught between Tenkan-Sen (35'948) and Kijun-Sen (38'703) !
Watch the Lagging Line which is still, currently far below the daily clouds.
Ongoing downside price action on the RSI (countertrend corrective move only, seen so far !)
Watch both Tenkan-Sen and Kijun-Sen levels to get more clues about further development on a Daily basis.
A failure to stay and hold above the Tenkan-Sen would be the first warning signal, calling for lower levels, previously above mentioned.
On the other hand, a clear breakout of the Kijun-Sen which is also, currently, roughly the level of the downtrend resistance line would add further support, calling for higher levels
4 HOURS (H4)
The clouds... once again did its job perfectly well :-)in rejecting several upside breakout attempts !!!
Currently testing the bottom of the clouds... watch carefully price action over the coming hours, as a failure to hold above the bottom of the clouds (36'595) would also be an additional warning signal,
calling for lower levels.
Important to take note that the Kijun-Sen (H4) is at 37'126 which should also be considered as a very important support level !
1 HOUR (H1)
Already below the clouds !
I repeat it again...watch the clouds !
Have a nice afternoon and take care
Finally, if you like my analysis and if you find it add value on your trading strategies, please do not forget to like it and if you do not follow me yet, please add me on your following list too.
Many thanks in advance.
Kind regards
Ironman8848. & Jean-Pierre Burki
Indeed, the failure to recover, at least, above the middle level
of the previous candle (long black candle) confirmed that, the " BEARS " keep their advantage over the " BULLS ", at least,
for the time being !
In addition, a shy weekly closing @ 37'942 slightly above the weekly clouds bottom level (@ 37'360) is also showing a growing uncertainty and support fragility.
So what next ?
WEEKLY (W1)
NO SECRET... WATCH THE CLOUDS !
Indeed, the weekly clouds area (37'360 - 42'570) should be seen as a very good indicator for the upcoming trading sessions, as a breakout of one of those levels would have the following
implications :
ON THE UPSIDE :
A weekly closing above 42'570 (also the level of the Tenkan-Sen !) would confirm a bottom in place, calling for higher levels towards the psychological 50'000 area (Mid Bollinger Band (50'782) and Kijun-Sen or
Base line (50'975)
ON THE DOWNSIDE :
A weekly closing below 37'360 (weekly clouds bottom zone) would open the door for, firstly the former low @ 32'950 ahead of the psychological 30'000 support level; do not forget that the STRATEGIC TECHNICAL TARGET
REMAINS AT 28'600 WHICH SHOULD BE SEEN AS A VERY, VERY, VERY IMPORTANT LEVEL AS IT COULD BE :
A ) The double top trigger level which if broken (on a weekly closing basis) would have great heavy bearish implication in opening the door for much lower levels !!!
B) A potential double bottom, which if the BTC hold would give nice buying opportunity
DAILY (D1)
Ongoing downtrend still alive, caught between Tenkan-Sen (35'948) and Kijun-Sen (38'703) !
Watch the Lagging Line which is still, currently far below the daily clouds.
Ongoing downside price action on the RSI (countertrend corrective move only, seen so far !)
Watch both Tenkan-Sen and Kijun-Sen levels to get more clues about further development on a Daily basis.
A failure to stay and hold above the Tenkan-Sen would be the first warning signal, calling for lower levels, previously above mentioned.
On the other hand, a clear breakout of the Kijun-Sen which is also, currently, roughly the level of the downtrend resistance line would add further support, calling for higher levels
4 HOURS (H4)
The clouds... once again did its job perfectly well :-)in rejecting several upside breakout attempts !!!
Currently testing the bottom of the clouds... watch carefully price action over the coming hours, as a failure to hold above the bottom of the clouds (36'595) would also be an additional warning signal,
calling for lower levels.
Important to take note that the Kijun-Sen (H4) is at 37'126 which should also be considered as a very important support level !
1 HOUR (H1)
Already below the clouds !
I repeat it again...watch the clouds !
Have a nice afternoon and take care
Finally, if you like my analysis and if you find it add value on your trading strategies, please do not forget to like it and if you do not follow me yet, please add me on your following list too.
Many thanks in advance.
Kind regards
Ironman8848. & Jean-Pierre Burki
