On the daily timeframe price is trying to form a bottom and did close above the
Weekly pivot point yesterday at 8470. The descending bullish projected Cloud is
something seen only in very volatile markets. Currently it has flattened but ideally
we like to see it expand and ascend, to "drag" price with it. The trend is bearish and
price is trading below the SMA200 too. As the action has unfolded the bias is to the
downside until we see a close back inside the Cloud. A close above the Kijun Sen
(white line) will be a good sign too.
On the hourly chart to the right, price has broken a descending trendline with a
strong candle and has since congested sideways and formed a Bullflag. If price breaks
higher here it will ran into the resistance zone marked red in the chart around
9500. A close above this level and it will result in a trendshift on the daily timeframe.
Current Flag also reflects the intraday S/R around 8500 marked with red.
Overall, Bulls would like to see a daily close above the Weekly pp at 8470 and
preferrably a close above the Flag on the hourly somewhere above 8850. This
could be a foundation for further gains in bearish territory.
I have drawn the two symmetrical legs down from the top on the daily chart to the
left, to show that price has closed by the 61,8 fib of the CD leg and spiked by the
78,6 fib. If price fails and takes out the 7325 low, the D level and the completion
of the ABCD pattern stands right at the 78,6 fib of the larger swing Sep 14-Dec 16 2017.
But if price instead takes out the March 12 high at 9900, which is the C level of the
ABCD pattern, it will shift the bias in that the A level at 11688 is more likely to be
traded before the low at 7325.
Weekly pivot point yesterday at 8470. The descending bullish projected Cloud is
something seen only in very volatile markets. Currently it has flattened but ideally
we like to see it expand and ascend, to "drag" price with it. The trend is bearish and
price is trading below the SMA200 too. As the action has unfolded the bias is to the
downside until we see a close back inside the Cloud. A close above the Kijun Sen
(white line) will be a good sign too.
On the hourly chart to the right, price has broken a descending trendline with a
strong candle and has since congested sideways and formed a Bullflag. If price breaks
higher here it will ran into the resistance zone marked red in the chart around
9500. A close above this level and it will result in a trendshift on the daily timeframe.
Current Flag also reflects the intraday S/R around 8500 marked with red.
Overall, Bulls would like to see a daily close above the Weekly pp at 8470 and
preferrably a close above the Flag on the hourly somewhere above 8850. This
could be a foundation for further gains in bearish territory.
I have drawn the two symmetrical legs down from the top on the daily chart to the
left, to show that price has closed by the 61,8 fib of the CD leg and spiked by the
78,6 fib. If price fails and takes out the 7325 low, the D level and the completion
of the ABCD pattern stands right at the 78,6 fib of the larger swing Sep 14-Dec 16 2017.
But if price instead takes out the March 12 high at 9900, which is the C level of the
ABCD pattern, it will shift the bias in that the A level at 11688 is more likely to be
traded before the low at 7325.
