Price has been equalizing the past few days. The tightened candles over the past few days express the indecision of the current market participants. I see two scenarios unfolding in the near term. But first I will explain the what the indicators, candles, patterns, and support and resistance are conveying.
Ichimoku
The Kijun Sen has been flat the past few days, which expresses lessened volatility. However, the Kijun is parallel to the micro and macro fib levels between the price levels of 130 - 134.
Additionally, the Tenkan measures short term price movements and is much more "flexible" than the Kijun. We can see the Tenkan has begun moving downwards, which means it's resistance will soon be acting as support in the short term. That is a bullish signal. Possible bounce.
The Kumo has begun to lessen in size and the Senkou B is beginning to curl downwards, which is necessary for any potential bull twist should a future uptrend occur. This movement is illustrated by the yellow box.
The MACD tells us the price is in an oversold territory, and a bullish crossover should be taken as confirmation should upwards price action occur.
As for the TRIX, there is a clear buy signal that has not yet fully crossed over. But, the upwards momentum of the indicator is another bullish signal. Keep in mind though, the signal line has not crossed yet, and there is still the potential for a rejection.
The green box shows us very strong levels of support at these current prices, and the prices below this as well.
The macro Fibonnaci retracement (right) includes more past price action and has been drawn in congruence with the downtrend.
Conversely, the micro Fibonacci is capturing shorter term price action since the uptrend occurred on the 15th of December.
These two Fibonacci retracements further reinforce the strong buying support between the 99 - 110 price range.
Our two scenarios are upwards and downwards as always. Always look at price action as having two potential paths at the same time. Schrodingers price action if you will.
A downside movement has a very high probability of causing increased purchasing. If the price moves to the 99 price level, that would signify a retracement to 0.236, and more often than not, when the price retraces to those levels, we can expect a bounce towards the 0.618.
All of these factors lead me to believe that whether or not the price action plays upwards or downwards, we will see the price reach the top of the Kumo and 0.618 Fibonacci levels between 130-140.
Ichimoku
The Kijun Sen has been flat the past few days, which expresses lessened volatility. However, the Kijun is parallel to the micro and macro fib levels between the price levels of 130 - 134.
Additionally, the Tenkan measures short term price movements and is much more "flexible" than the Kijun. We can see the Tenkan has begun moving downwards, which means it's resistance will soon be acting as support in the short term. That is a bullish signal. Possible bounce.
The Kumo has begun to lessen in size and the Senkou B is beginning to curl downwards, which is necessary for any potential bull twist should a future uptrend occur. This movement is illustrated by the yellow box.
The MACD tells us the price is in an oversold territory, and a bullish crossover should be taken as confirmation should upwards price action occur.
As for the TRIX, there is a clear buy signal that has not yet fully crossed over. But, the upwards momentum of the indicator is another bullish signal. Keep in mind though, the signal line has not crossed yet, and there is still the potential for a rejection.
The green box shows us very strong levels of support at these current prices, and the prices below this as well.
The macro Fibonnaci retracement (right) includes more past price action and has been drawn in congruence with the downtrend.
Conversely, the micro Fibonacci is capturing shorter term price action since the uptrend occurred on the 15th of December.
These two Fibonacci retracements further reinforce the strong buying support between the 99 - 110 price range.
Our two scenarios are upwards and downwards as always. Always look at price action as having two potential paths at the same time. Schrodingers price action if you will.
A downside movement has a very high probability of causing increased purchasing. If the price moves to the 99 price level, that would signify a retracement to 0.236, and more often than not, when the price retraces to those levels, we can expect a bounce towards the 0.618.
All of these factors lead me to believe that whether or not the price action plays upwards or downwards, we will see the price reach the top of the Kumo and 0.618 Fibonacci levels between 130-140.
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