Update: Bullish Reversal; Bearish Targets | $IBEX35 $ESP35 $EUR
Friends,
Back on January 24th, we forecast a potential bearish target with a "far-fetched" qualifier, although we also provided two other prior examples where that proprietary geometric pattern unfolded - See this chart, as well as examples in the USDollar index and AUDUSD here:
CHANGE IN DIRECTION:
At this point though, we have to change our directional stance based on a BULLISH market reversal signal favoring further rallying in this index. While we remain cautious about further advance, the system is the plan. Hence, we will continue to plan the trade, and trade the plan.
STRUCTURES:
On a structural standpoint, 10549 offers the next probable resistance overhead. However, once surpassed, expect this level to convert to support as price might probably use that structure as a springboard to the new high target defined today as "TG-Hi = 1109 - 25 FEB 2014".
At that point, added forecast will require a review and further analysis of the chart, but the background that motivates our interest in the lower target defined earlier in the year as "TG-Lo = 7791 - 24 JAN 2014" is based on a proprietary geometric pattern we called "The Great White". Caveat here is that our predictive analysis and forecast are NOT based on price action, whereas our proprietary patterns (Great White, Janus, Deep Shark, Euclid) are price-based, hence less relevant to our way of analyzing the market. Nonetheless, some traders may be exclusively pattern traders, and on our side, we continue to discover, test and validate such patterns as well, out of curiosity.
ALTERNATE SCENARIO:
In case the bullish scenario would not play out (i.e.: further rallying and breaking above structure at 10549), we would like to bring the trader's attention to two other structural levels:
One rests at 9650, defined as the prior structure low. However, transgression of that level should not necessarily constitute a bullish abandonment, or herald a directional reversal. In fact, in our system, we would tolerate a reversal as low as the "Pink" 9506-to-9371 range. However, if and once price breaks below and closes below ("BBCB, as opposed to breaking above and closing above, or "BACA"), then we would be concerned bulls, and would seek ways to reverse tack.
OVERALL:
A BULLISH reversal confirmation occurred with a new bullish target at 11092. Further downside might exist, but that scenario does not currently apply to the directional signal just released by our prop strat system.
Cheers,
David Alcindor
TradingView.com Moderator, Alias: 4xForecaster
Predictive Analysis & forecasting
-----------------------------------------------------
Get out Twitted forecasts, signals,analyses:
Alias: @4xForecaster
-----------------------------------------------------
Disclaimer: Forecasts, analyses and opinions generated herein are for educational purposes only and are not trading recommendations. We trust that you will do your own due diligence first, then seek professional advice from a licensed professional, then enter the market at your own perils - David Alcindor - TradingView.com Alias: 4xForecaster
Back on January 24th, we forecast a potential bearish target with a "far-fetched" qualifier, although we also provided two other prior examples where that proprietary geometric pattern unfolded - See this chart, as well as examples in the USDollar index and AUDUSD here:
CHANGE IN DIRECTION:
At this point though, we have to change our directional stance based on a BULLISH market reversal signal favoring further rallying in this index. While we remain cautious about further advance, the system is the plan. Hence, we will continue to plan the trade, and trade the plan.
STRUCTURES:
On a structural standpoint, 10549 offers the next probable resistance overhead. However, once surpassed, expect this level to convert to support as price might probably use that structure as a springboard to the new high target defined today as "TG-Hi = 1109 - 25 FEB 2014".
At that point, added forecast will require a review and further analysis of the chart, but the background that motivates our interest in the lower target defined earlier in the year as "TG-Lo = 7791 - 24 JAN 2014" is based on a proprietary geometric pattern we called "The Great White". Caveat here is that our predictive analysis and forecast are NOT based on price action, whereas our proprietary patterns (Great White, Janus, Deep Shark, Euclid) are price-based, hence less relevant to our way of analyzing the market. Nonetheless, some traders may be exclusively pattern traders, and on our side, we continue to discover, test and validate such patterns as well, out of curiosity.
ALTERNATE SCENARIO:
In case the bullish scenario would not play out (i.e.: further rallying and breaking above structure at 10549), we would like to bring the trader's attention to two other structural levels:
One rests at 9650, defined as the prior structure low. However, transgression of that level should not necessarily constitute a bullish abandonment, or herald a directional reversal. In fact, in our system, we would tolerate a reversal as low as the "Pink" 9506-to-9371 range. However, if and once price breaks below and closes below ("BBCB, as opposed to breaking above and closing above, or "BACA"), then we would be concerned bulls, and would seek ways to reverse tack.
OVERALL:
A BULLISH reversal confirmation occurred with a new bullish target at 11092. Further downside might exist, but that scenario does not currently apply to the directional signal just released by our prop strat system.
Cheers,
David Alcindor
TradingView.com Moderator, Alias: 4xForecaster
Predictive Analysis & forecasting
-----------------------------------------------------
Get out Twitted forecasts, signals,analyses:
Alias: @4xForecaster
-----------------------------------------------------
Disclaimer: Forecasts, analyses and opinions generated herein are for educational purposes only and are not trading recommendations. We trust that you will do your own due diligence first, then seek professional advice from a licensed professional, then enter the market at your own perils - David Alcindor - TradingView.com Alias: 4xForecaster