Following the sharp decline (-30.85 %), since the ATH @ EUR 1678.00 reached on December 1st, 2021, the price action triggered an HAMMER (reversal pattern) coupled
with a RSI BULLISH DIVERGENCE, which is a first positive signal calling for a trend reversal towards higher levels.
Important to also note that a potential DOUBLE BOTTOM is in progress (first bottom having been reached on October 1st, 2021 @ 1'166.50 !
Today's ongoing price action (long white candle) is, for the time being confirming this reversal and a closing level, on a DAILY BASIS, ideally above the Tenkan-Sen or Conversion line (@ 1'257.80) would
add further support to this expected bullish scenario.
IMPLICATIONS :
UPSIDE :
Once this first resistance level will be broken, focus will be on the second resistance area (cluster of both Kijun-Sen or Base line (1288) and the MId Bollinger Band-(1298) -"my own Barometer !", for further development
(on this daily time frame, BULLISH above and BEARISH below the Mid Bollinger Band (MBB).
The ongoing downtrend resistance line (in red), currently around 1'380 would be the next resistance level to look at ahead of the Daily clouds area (currently very thin) and close to the 61.8% Fibonacci retracement @ 1480.50.
A clear upside breakout of the top of the clouds would reopen the door for a new attempt of ATH.
DOWNSIDE :
Former low @ 1'160.50 is the first support to look at and any dips towards this level should be seen as consolidative move in a new uptrend.
Main focus will remain on the WEEKLY CLOUDS SUPPORT AREA (1'200-1'025) with intermediate support @ 1'097,00 this level being the 50% Fibonacci retracement of the big rally which started @ EUR 516.00 in March 16, 2020
CONCLUSION :
HERMES is a diamond, very well managed and fundamentally exceptional !
Therefore, STRATEGIC LONG EXPOSURE SHOULD BE BUILT FROM CURRENT LEVEL AND ON DIPS AS A REAL VALUE ADDED ON ANY PORTFOLIO.
with a RSI BULLISH DIVERGENCE, which is a first positive signal calling for a trend reversal towards higher levels.
Important to also note that a potential DOUBLE BOTTOM is in progress (first bottom having been reached on October 1st, 2021 @ 1'166.50 !
Today's ongoing price action (long white candle) is, for the time being confirming this reversal and a closing level, on a DAILY BASIS, ideally above the Tenkan-Sen or Conversion line (@ 1'257.80) would
add further support to this expected bullish scenario.
IMPLICATIONS :
UPSIDE :
Once this first resistance level will be broken, focus will be on the second resistance area (cluster of both Kijun-Sen or Base line (1288) and the MId Bollinger Band-(1298) -"my own Barometer !", for further development
(on this daily time frame, BULLISH above and BEARISH below the Mid Bollinger Band (MBB).
The ongoing downtrend resistance line (in red), currently around 1'380 would be the next resistance level to look at ahead of the Daily clouds area (currently very thin) and close to the 61.8% Fibonacci retracement @ 1480.50.
A clear upside breakout of the top of the clouds would reopen the door for a new attempt of ATH.
DOWNSIDE :
Former low @ 1'160.50 is the first support to look at and any dips towards this level should be seen as consolidative move in a new uptrend.
Main focus will remain on the WEEKLY CLOUDS SUPPORT AREA (1'200-1'025) with intermediate support @ 1'097,00 this level being the 50% Fibonacci retracement of the big rally which started @ EUR 516.00 in March 16, 2020
CONCLUSION :
HERMES is a diamond, very well managed and fundamentally exceptional !
Therefore, STRATEGIC LONG EXPOSURE SHOULD BE BUILT FROM CURRENT LEVEL AND ON DIPS AS A REAL VALUE ADDED ON ANY PORTFOLIO.