What I have to add is I always consider the longer time frame to be more powerful, relevant over the short term. So when I see clear counter trend against the higher time frame I try not to haunt for the top, but start watching for lower (daily) time frame sell signals and structure changes when I see higher (weekly) is reaching a key supp/res level.
This is exactly the case now with Euro Stoxx 50 .
First please check how I warned you for a possible pull back and counter trend move 26 days ago! (hah, what a coincident, I love 26 days as in major average Kijun Sen has 26 days :-) )
This counter trend move is still intact, however on weekly chart, price is reaching a .
- Heikin-Ashi shows counter trend pull back is in progress. However we have to see haDelta/SMA3 may peak this or next week! Early warning for possible momentum slow down in coming weeks.
- Price reaches Kijun Sen, as first support. Possible starts here. Obviously optimal sell level would more above 3200.
- Second and stronger resistance is 3250: 100 , Spot Kumo, future Senkou B and .
- EWO is . We likely saw wave 3, and we are in wave 4 now. Wave 5 still ahead, that would be the ultimate big short, targetting 2500 later this year.
- Trend is .
- is neutral with bias. Chikou is above past candles. A break above Kumo will extend couter move (ag. weekly chart)
- Heikin Ashi is .
- Kijun Sen is far below Price, wait until it catches up. Right now no good risk/reward sell setup!
- Upper supp/res is 3250-3300, lower key is 2990.
- EWO is
Obviously and oversoot above weekly Kijun Sen i spossible in coming weeks, but we already see that the strong momentum will start to decline a bit. Wait until we see HA candle body shrink, and then check for Sell signal on the daily time frame.
1.Those who still hold counter longs should either buy a risk/reversal put option structure to protect profits, or start to think about scaling back position, or trail up stops.
2. Those who would like to sell this market short in line with major trend, I think have to wait a bit more, and watch developments as described above. No need to rush and get frustrated with taking position too early..