After making a Ichimoku sell signal on the 15th July price tested the
Yearly S2/March low and bounced strongly. Even if technical signals warns
of trend continuation it is also clear that there is considerable uncertainty in
the market, and bulls are ready to step in rather aggressively. The bounce
from Yearly S2, 1,0830, first reached the Kumo Cloud and after a couple days
shot up towards the Kijun Sen (white line), and pierced it too but was unable to
close above it. On weekly chart, a similar situation is at hand, with the Kijun Sen
acting resistance. Yesterdays close gave another sell signal. First of all, considering
market indecision (retail sentiment is currently almost balanced), it seems like
price is aiming to trade the Weekly Pivot Point at 1,0935. A daily close below it
will again expose the Yearly S2, threatening a breakdown of the range (congestion).
A close above the Kijun Sen and a return inside the cloud, will expose the upper Kumo Cloud.
Again, a conservative approach is to wait for a daily close below 1,08 from a bearish perspective.
Yearly S2/March low and bounced strongly. Even if technical signals warns
of trend continuation it is also clear that there is considerable uncertainty in
the market, and bulls are ready to step in rather aggressively. The bounce
from Yearly S2, 1,0830, first reached the Kumo Cloud and after a couple days
shot up towards the Kijun Sen (white line), and pierced it too but was unable to
close above it. On weekly chart, a similar situation is at hand, with the Kijun Sen
acting resistance. Yesterdays close gave another sell signal. First of all, considering
market indecision (retail sentiment is currently almost balanced), it seems like
price is aiming to trade the Weekly Pivot Point at 1,0935. A daily close below it
will again expose the Yearly S2, threatening a breakdown of the range (congestion).
A close above the Kijun Sen and a return inside the cloud, will expose the upper Kumo Cloud.
Again, a conservative approach is to wait for a daily close below 1,08 from a bearish perspective.
