The red line in the chart is SL which is drawn parallel to the UMLH of the pitchfork in the monthly analysis. The weekly look reinforces the bearish bias we have thanks to the monthly view. The price could not reach the SL but returned from a lower point, which the UMLH of the downsloping pitchfork is perfectly aligned with. This indicates further selling.
We had just the reverse of what we have in the monthly chart. That is, the Stoch drew a long-lasting bottom between May 2014 and April 2015. The final bullish crossover therein coincided with the reaction from the LMLH of the upsloping pitchfork, which was a good buy signal. The second buy signal was given when the price went into and came back from the overbought zone, that is, in October 2015. I personally do not trade weekly charts, so those signals are not actual signals but just indicators of upcoming rallies, in which actual signals are to be sought after. The touch to the UMLH should be the final target for those signals, meaning that the trend is highly likely to reverse to the bear side. The big red candle shows strength, though not yet confirmed by the Stoch.
We had just the reverse of what we have in the monthly chart. That is, the Stoch drew a long-lasting bottom between May 2014 and April 2015. The final bullish crossover therein coincided with the reaction from the LMLH of the upsloping pitchfork, which was a good buy signal. The second buy signal was given when the price went into and came back from the overbought zone, that is, in October 2015. I personally do not trade weekly charts, so those signals are not actual signals but just indicators of upcoming rallies, in which actual signals are to be sought after. The touch to the UMLH should be the final target for those signals, meaning that the trend is highly likely to reverse to the bear side. The big red candle shows strength, though not yet confirmed by the Stoch.
Comment:
The bearish bias in weekly and monthly charts now turned bullish as the invalidation of the key levels. More long positions on the way after the pullback. The upsloping UMLH is targeted.
