Well... This chart is a difficult one. We have a long term bearish channel and a mid term bullish support (Acting like a corrective structure)
We also have in the short term an inversed flag/corrective structure that could end both ways, being broken upside or downside. Anyway as it's an inversed flag it should break downside wich means bullish mid term support...
- Ibex in 5 wave move lower
- support at 8360 levels may offer decent RR for a counter trade off the bear flag
- need confirmation from the RSI on larger time frames
- 1 hour potential Head and Shoulder formation targets 8800
- A bounce from current level may put in a strong rebound to test upper bullish channel
- If H&S plays out - the target is decent and viable since 8800 level has minor support April 15
See weekly and daily chart too for directional play
Divergence has been corrected. It would be ideal open the position at the last minimum but I was waiting for the confirmation. That will be when the RSI touches the yellow dotted line. It should not break it and define the RSI trend.
The trade has a very tight stop because we are assuming the floor before it is consolidated, so is a risky spot to enter.
in the...
Well... I guest most or all of my followers wont know what share is this. Gamesa is a share at the spanish index. I've compared this one with it's index.
Gamesa is also in talks with Siemens to create the biggest eolic company. The price jumped 20% the 29th of Jan.
We could see the price going up (even if there aren't news from Siemens) thx to the bounce...
If we check how volume is increasing we can detect some panic around. We should spect some kind of hard bounce around this levels or 7500 levels.
Regards.
Support values at 7500 level from 2012-2013 are at the very long direction of the index.
The IBEX35 should go to 7500 before any serious "bull" approach
Well... After all this news, this index is so overbought and on critical levels of resistance, we should see this one going down sooner than later.
Regards
UPDATE 5/5: Stopped out on both positions. Result: -2R
Two entries:
1. Buy limit half of 26/03 pin bar, s/l under horizontal support, t/p around highs on monthly chart, R:R 3,5:1
2. Buy stop top of 26/03 pin bar, s/l under horizontal support, t/p around highs on monthly chart, R:R 2:1
Let the euro QE roll...
