***After posting the chart, for some reason I don't know, probably a technical error, the hammer became a piercing line pattern. So no hammer, but piercing line***
First of all, I need to say that the trade has no confirmation yet, but it's starting to look bullish.
As you can see, CME rallied to 85$ and formed a double top. Target was at 72$, and respected it, without a big fight, closing below the first strong support zone at 78$ with ease.
Now, it's looking like a double bottom at a good daily support area, close to a very very strong weekly support, and a psychological level. There is a hammer at the current level, but I always wait for confirmation. Looking at the histogram, we can see a nice bullish divergence forming, bulls being much weeker now than a few weeks ago. Looking at the MACD lines, we have a class B bullish divergence. As I wrote in the chart, histogram is going flat, not higher, so neither divergence is confirmed yet, they are still forming.
So, we don't have candle confirmation and no divergence confirmation, so it's good to be patient. As long as we stay on top of the weekly support area, I'm looking to buy.
First of all, I need to say that the trade has no confirmation yet, but it's starting to look bullish.
As you can see, CME rallied to 85$ and formed a double top. Target was at 72$, and respected it, without a big fight, closing below the first strong support zone at 78$ with ease.
Now, it's looking like a double bottom at a good daily support area, close to a very very strong weekly support, and a psychological level. There is a hammer at the current level, but I always wait for confirmation. Looking at the histogram, we can see a nice bullish divergence forming, bulls being much weeker now than a few weeks ago. Looking at the MACD lines, we have a class B bullish divergence. As I wrote in the chart, histogram is going flat, not higher, so neither divergence is confirmed yet, they are still forming.
So, we don't have candle confirmation and no divergence confirmation, so it's good to be patient. As long as we stay on top of the weekly support area, I'm looking to buy.