Weekly: - Ichimoku is neutral, with bearish bias. Price is too far below Kijun Sen, should consolidate or retrace a bit. - Heikin-Ashi signal is bearis, but haDelta shows market has started to lose its momentum at the 1160+ key resistance. - Momentum loss is not yet visible in MACD histogram and in EWO.
Daily: - Ichimoku is bearish, with strong support around 1248. Price is quite far below Kijun Sen -> a swing back above 1200 would not be surprising. - Heikin-Ashi started to signal indecision -> haDelta has been building positive divergence - EWO is too deep, this wave momentum is not possible to sustain short term. Histogram ticks higher a bit.
There is some chance to see next wave up to 1225 - 1245, but we need more confirmation. Short term key for pull back is 1286 (daily Tenkan Sen)
Idea: reduce shorts if you have. In case you'd like to play swing long, watch 4H time frame for a clear counter trend signal.
Comments
A-shot
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I have a question about these charts - which one is the main one for you, Weekly or daily?
Kumowizard
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@2use, to see trends and major levels I use Weekly, but I enter and exit trades by Daily. In fact I use both. Multi time-frame is important, because most of the time a key level on weekly is in line with a daily key. Like in this case weekly Tenkan at 1248 is in line with daily Kijun and Senkou B lines. That's why it is considered as a strong supp/res on the top side.
A-shot
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@Kumowizard, Yes, but you cant do vice versa. You cant decide the daily based on a weekly ...as a change there is later than on daily and you would kinda be late already. So for a weekly analysis and a entry point i would go to check daily to find a spot. but if focus is on daily in and outs, weekly may show the trend but is not adding that much to the decision point of entry or exit for instance
Kumowizard
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@2use, we say the same I think. weekly shows the trend, and major levels. But also shows less noise with weekly Heikin-Ashi, right now it tells us some momentum loss. Otherwise weekly is NOT trending.
Daily is the one that I use for trade entries and exits. The daily trend is bearish, so with larger positions I'd not bet on swing longs, would rather try to catch sell signals at daily supports. If I were short (which I am not to be honest), I'd cover 2/3 of my position at this level.