Now, we are waiting for the bull break out of the falling for several reasons: We have the Tenkan Sen and Kijun Sen lines at the same level, 7944.4 € , making strong support and they are close 3 bull signal of if the price continues it's scaling. When the price reached 12000 € aprox. (final of the wave 1) the price retraced till 6600 € (61.8 fib. retracement and the exact end of the wave 4 of a little degree like the theory said, (Z) = (4)). This said to me that correction is ended.
We have had 2 bull signals in the recently (in yellow circles in the chart):
- The price crossed the Kijun Sen (red line in the ), october 25: WEAK bull signal because the price was under the kumo.
- The Chikou span line (green line) cross the price, also october 25: WEAK bull signal because the price was under the kumo.
The price, at this moment, pull back when it touched the falling . Normal. BUT, it is inside the kumo in a transition zone between bulls and bears fight. In my personal opinion the price gonna resist above the 8000 € and finally the bulls will win breaking up the and will go to look for the 12000 € level because we are in the beginning of a wave 3, the most powerful impulsive wave.
How I said in my first publication the price went to retrace to 7500 € , my entry point. I was conservative because we were waiting for the wave 3 and the FOMO made his work.
The principals resistant to break are the falling and the levels 9400 € and 11200 € . The principal strong resistant is the 7944.4 € level junction between Tenkan Sen and Kijun Sen.
The confirmation of my point of view will come with a clear break up of the and 3 bull signals (blue circle on the chart):
- The price will break out the Kumo cloud.
- The Tenkan Sen Kijun Sen cross.
- Senkou Span cross ( advanced lines of the Kumo cloud).
Let's wait to see what happens.
P.D: All in this post is my personal opinion and this doesn't mean that I am right. Spend your money at your own risk.