Broad picture continue to be negative !!!
WEEKLY (W1)
Last week price action triggered a long black candle (very bearish, almost a "MARUBOZU") which roughly closed at its lowest level of the week !
Therefore, it is very important to look very carefully at the price action which took place prior to this long black candle.
The week before, a perfect *DOJI" pattern has been triggered which was a first warning signal of growing uncertainty; in addition, the closing level
of this doji was at the same point than the weekly Kijun-Sen, which also added increasing pressure for a potential downside breakout which occured this week.
Last week price action should not be underestimated as the former uptrend channel has also been clearly broken, meaning a TREND REVERSAL CONFIRMED in this weekly
time frame !!!
STRATEGIC TARGET IS AT 12'894 (38.2% Fibonacci retracement of the big rally, starting @ 6628.75-16767.50 in March 2020 towards the ATH reached in November 2021.
Please also take note that this level coincides with the weekly clouds bottom level and therefore should be really considered as a KEY PIVOT SUPPORT LEVEL for further development.
Watch also :
1) the Lagging line price action over the upcoming sessions;
2) the monthly clouds in overlay on this weekly chart which gives additional information about downside potential;
3) RSI price action which is still converging to the downside.
DAILY (D1)
Ongoing downside move, confirmed by :
1) the primary downtrend resistance line which started from ATH (16'767.50) towards the pullback attempt which failed @ 16'659.50;
2) the secondary ongoing downtrend resistance line, currently around 15400, which started from 16'659.50
Low reached so far last Friday intraday @ 14'408 with a daily&weekly closing roughly at the low of the day& week @ 16'426.50 which is not positive at all for the upcoming trading session (s)
Interesting to have a look at the trading range (13'788-12'648) of the weekly clouds (on overlay) which should be seen as the next significant support zone.
Clear RSI bearish convergence.
4 HOURS (H4)
No trend reversal detected on this time frame yet, still converging to the downside.
1 HOUR (H1)
Potential upcoming RSI bullish divergence which is not validated yet !
Therefore, watch carefully,, at the next opening trading session, upcoming short term price action which would validate or invalidate a potential short term recovery which, for the time being is expected
to be very limited and which should be seen as a short term corrective move.
ONLY A SUSTAINABLE RECOVERY ABOVE THE 15'000 AREA WOULD NEUTRALISE TEMPORARY THIS ONGOING DOWNSIDE MOVE PRICE ACTION.
Ironman8848 & Jean-Pierre Burki
WEEKLY (W1)
Last week price action triggered a long black candle (very bearish, almost a "MARUBOZU") which roughly closed at its lowest level of the week !
Therefore, it is very important to look very carefully at the price action which took place prior to this long black candle.
The week before, a perfect *DOJI" pattern has been triggered which was a first warning signal of growing uncertainty; in addition, the closing level
of this doji was at the same point than the weekly Kijun-Sen, which also added increasing pressure for a potential downside breakout which occured this week.
Last week price action should not be underestimated as the former uptrend channel has also been clearly broken, meaning a TREND REVERSAL CONFIRMED in this weekly
time frame !!!
STRATEGIC TARGET IS AT 12'894 (38.2% Fibonacci retracement of the big rally, starting @ 6628.75-16767.50 in March 2020 towards the ATH reached in November 2021.
Please also take note that this level coincides with the weekly clouds bottom level and therefore should be really considered as a KEY PIVOT SUPPORT LEVEL for further development.
Watch also :
1) the Lagging line price action over the upcoming sessions;
2) the monthly clouds in overlay on this weekly chart which gives additional information about downside potential;
3) RSI price action which is still converging to the downside.
DAILY (D1)
Ongoing downside move, confirmed by :
1) the primary downtrend resistance line which started from ATH (16'767.50) towards the pullback attempt which failed @ 16'659.50;
2) the secondary ongoing downtrend resistance line, currently around 15400, which started from 16'659.50
Low reached so far last Friday intraday @ 14'408 with a daily&weekly closing roughly at the low of the day& week @ 16'426.50 which is not positive at all for the upcoming trading session (s)
Interesting to have a look at the trading range (13'788-12'648) of the weekly clouds (on overlay) which should be seen as the next significant support zone.
Clear RSI bearish convergence.
4 HOURS (H4)
No trend reversal detected on this time frame yet, still converging to the downside.
1 HOUR (H1)
Potential upcoming RSI bullish divergence which is not validated yet !
Therefore, watch carefully,, at the next opening trading session, upcoming short term price action which would validate or invalidate a potential short term recovery which, for the time being is expected
to be very limited and which should be seen as a short term corrective move.
ONLY A SUSTAINABLE RECOVERY ABOVE THE 15'000 AREA WOULD NEUTRALISE TEMPORARY THIS ONGOING DOWNSIDE MOVE PRICE ACTION.
Ironman8848 & Jean-Pierre Burki
