Story of a giant grizzly's Head and Shoulders

FX:EUSTX50   Euro Stoxx 50 Index
95 2 4
It takes extremely long time to develope such a pattern on a weekly chart. But when it is confirmed, it will have a very serious consequence.

- Bearish Ichimoku setup, but not strategic bearish until clearing previous low of 3000.
In fact I think this market is building a huge bearish Head and Shoulders pattern. I think we still have 3-4 months to finish the right shoulder, and during this long time period market has chance to move in this wide range of 3000-3350! After all, there is ECB money printing, so 3000 will likely be bought from time to time.
However the really good risk reward is to sell spikes on any visible weekly exhaustion, so short this index in 3250-3350 range from time to time.
- Heikin Ashi signal is counter bullish . You have to watch price action on lower time frames too whenever haDelta's SMA3 reches zero line again.

- Due to short squeeze price retested Kumo and changed Ichimoku setup to more neutral from extreme bearish . Thick Kumo ahead.
- Heikin Ashi has a clear warning signal for bullish exhaustion! Look at candle position and haDelta. Since this possible exhaustion is happening ard             Kumo resistance, it can easily turn into a pull back to retest 3100-3150 again.
- Market has to be treated as Bearish until trades below 3330!

Get out of all longs, open some counter shorts
Reloading shorts? I think Dax is even more bearish right now.
Kumowizard IvanLabrie
Yes, I started to sell some small. But I wait for a bearish Heikin Ashi signal before I increase shorts.
+1 Reply
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