Classic Bearish Ichimoku Three-Conditions Setup for RKT

The Japanese term is Sanyaku Gyakuten (三役逆転)--a bearish three-conditions setup. Bad news in the form of increased competition has tanked tanked RKT. On Friday 30 Jan 26, price closed exactly at the bottom of a green kumo (strong support and resistance in the system). As a matter of fact, it's a classic bearish sanyaku (three conditions) setup, with the chikou (lagging) span diving through price, and a death cross (a cross of the tenkan-sen--conversion line and the kijun-sen--base line). From a purely technical viewpoint, it's still a perfect sanyaku because price hasn't closed below the cloud. If it confirms below, I'll probably short it. The question then becomes how low will it go. The first major support level below the cloud is at $15.34 for a -14.25% drop. After that, the next major pivot low is at $13.14 or so. In ichimoku, you want to see the kijun-sen pointing down for most of the descent, and you'll ride it down until price eventually touches it. If I get into the trade, I'll do the wave calculations for precise target levels as well as the kihon-suchi time calculations. じゃあね!

RKT