Daily: bullish Ichimoku setup, but looks overbought a bit. There is some negative divergence in Slow Stoch and MACD compared to last few days' Price action. Actually MACD gives a sell signal. Today's candle is a Hanging Man - warning signals for bulls! For some real correction it should break back below Tenkan Sen at 108,40.
Initial corrective tgt in that case would be 106,75-107.
4 Hrs: bullish ichimoku... until it is above the Kumo and 100 WMA. The support is obvious here as well: 108,50. ADX is below 20, DMI lines converging, so todays attempt to break even above 109,35 will likely be faded. That means Chikou Span will hit the Price candles again, and this bullish momentum will loose steam. Still doesn't necessarely mean it will break down from recent tops, but the chance of the correction will increase.
How to play a pull back trade? First of all wait until today's close to see how the candle forms. Then:
1. Agressive traders should play a 50 % retracement of the Hanging Man or the break below today's candle close strategy, which will be more or less in line with a strategy enterring short when price breaks back below Kijun Sen on the 4 Hrs. In this case stop has to be placed slightly above today's high (e.g. at 109,85)
2. Conservative traders should only play a 4 Hrs bearish Kumo and 100 WMA break. They need to wait for a close below 108,40 to enter short, and of course either their stop has to be at lower level, or the position size has to be smaller not to loose too much if things go wrong.
Again, initial corrective tgt would be 106,75-107. So calculate and manage your risk accordingly.
Initial corrective tgt in that case would be 106,75-107.
4 Hrs: bullish ichimoku... until it is above the Kumo and 100 WMA. The support is obvious here as well: 108,50. ADX is below 20, DMI lines converging, so todays attempt to break even above 109,35 will likely be faded. That means Chikou Span will hit the Price candles again, and this bullish momentum will loose steam. Still doesn't necessarely mean it will break down from recent tops, but the chance of the correction will increase.
How to play a pull back trade? First of all wait until today's close to see how the candle forms. Then:
1. Agressive traders should play a 50 % retracement of the Hanging Man or the break below today's candle close strategy, which will be more or less in line with a strategy enterring short when price breaks back below Kijun Sen on the 4 Hrs. In this case stop has to be placed slightly above today's high (e.g. at 109,85)
2. Conservative traders should only play a 4 Hrs bearish Kumo and 100 WMA break. They need to wait for a close below 108,40 to enter short, and of course either their stop has to be at lower level, or the position size has to be smaller not to loose too much if things go wrong.
Again, initial corrective tgt would be 106,75-107. So calculate and manage your risk accordingly.
