Price at Resistance. Trading Plans and Levels With Bullish Bias
Price has hit the upper border of the Ichimoku cloud, with the
projected cloud (the future) still bearish. Because the Weekly
timeframe has produced a clear Ichimoku buy signal last week
(Cloud breakout) we expect price to continue upward. The first
weekly target stands at the 61,8 fib of the CD leg at 118.85
right at the dec-16 top, with an ultimate target (D-level) at
125.50. But on the Daily timeframe here, we see price hitting
the top of the cloud and it will either respect this level and
retrace (perhaps to the lower part of the cloud, or it will attempt
to breakout directly, and then it is likely we will see it gravitate back to
the top of the cloud for a retest (and ideally a twist in the
projected cloud) Note that Monthly R1 is in alignment with the
upper cloud at 112.83. A way to play the weekly breakout is
to wait for a retracement on the daily chart and get in at the
nearest support.
Downside risk is pretty clear from here which is a good thing in technical trading.
If price will close below the Daily Kumo Cloud it will produce a sell signal and we might then
see a move down for a test of the yet untraded Monthly Pivot point
at 110.48. Resistance above the cloud: Monthly R2 at 114.13 / Previous top around 115.00.
projected cloud (the future) still bearish. Because the Weekly
timeframe has produced a clear Ichimoku buy signal last week
(Cloud breakout) we expect price to continue upward. The first
weekly target stands at the 61,8 fib of the CD leg at 118.85
right at the dec-16 top, with an ultimate target (D-level) at
125.50. But on the Daily timeframe here, we see price hitting
the top of the cloud and it will either respect this level and
retrace (perhaps to the lower part of the cloud, or it will attempt
to breakout directly, and then it is likely we will see it gravitate back to
the top of the cloud for a retest (and ideally a twist in the
projected cloud) Note that Monthly R1 is in alignment with the
upper cloud at 112.83. A way to play the weekly breakout is
to wait for a retracement on the daily chart and get in at the
nearest support.
Downside risk is pretty clear from here which is a good thing in technical trading.
If price will close below the Daily Kumo Cloud it will produce a sell signal and we might then
see a move down for a test of the yet untraded Monthly Pivot point
at 110.48. Resistance above the cloud: Monthly R2 at 114.13 / Previous top around 115.00.