- setup is , so is the major trend, but it looks like Price fails to break back above Tenkan Sen (9 weeks avg). Both Tenkan and Kijun turned flat, not pointing up any more -> says consolidation, loss of momentum
- Weekly supports are: Kijun (also important horizontal level now) at 160,70. Next is 100WMA and forward Senkou B (52 weeks avg) at 157,40+. Last support is: and spot Senkou B (represents the 52 weeks avg 26 weeks ago!) at 154,40.
- Heikin-Ashi shows indecision with initial bias. Week not yet over, but haDelta/SMA3 has a serious warning.
- EWO has been decreasing. We can not call it a divergence, as you see price has dropped in line with EWO .
- is neutral. Price tried to break above Kumo few times, but always blocked by sellers.
- Heikin-Ashi has a bias, but haDelta/SMA3 is hesitating ard zero line. Not a surprise, as no one really wants to go all in before the Clawn of ECB comes to the stage tomorrow.
- EWO down to neutral zero
- Short term support and the level where we can look to increase shorts is 162,80-163, Pretty close, so stay tuned!
Do you remember my reflation trade theory? If not, you can check my earlier posts about Bund!
Do you see what commodity space is doing? Exploding higher! Ideas, and stupid media reasons do not matter! I don't care why it is happening. Actually I now the primer reason behind commodity price movement. Very simple, and as technical traders this is the only thing that matters: THERE ARE MORE BUYERS THAN SELLERS!
Only price pays :-)
I know what more thing. If commodity prices go up -> and expectations will go up too! Even if CBs deny and will be reluctant to hike rates, long end of bond curves can start to suffer and reprice . Bond curves will steepen.
I still insist that Bonds are/will be better shorts than equities. The real bubble is in bond mkt, so this will be the first big trade. (maybe equities later).