Price has bounced sharply from the May low and the Yearly S2 pivot support., and is now testing the Kumo Cloud resistance at 1,10. Bears should look for a sell signal on intraday chart or just wait for the daily close. A long wicked daily candlewill be good to use to go short. A close inside the Cloud increases the likelihood for a return to the monthly PP and upper Cloud 1,1150-1,12. However, today, there is also strong resistance at Weekly R1 and a sloping trendline, at 1,1070. Since the B-level from May was taken out, we can say that the Butterfly has become more probable, despite the sharp bounce.
Comments
NavindranAruldas
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so your are telling that it will go up to 1.115 before going down
CapMoore
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With a daily close inside the Cloud, above 1,10, it will likely first challenge the trendline and Weekly R1 at 1,1070 and if breached the upper cloud is next.
A close inside the cloud will complicate things for bears, as we already had a nice bearish breakout on the 16th. I think this signal is still valid,
thus the retest of the cloud and from there a continuation. The close is always important in my book.
CapMoore
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The lower Cloud level today is exactly 1,0992, thus a close below 1,0990 is prefered from a bearish perspective.