Price formed bearish divergence with MACD and RSI. We can trade against the main up trend. Entry level is below MA20, stop orders must be placed above the local swing high. Profit targets are MA50 and MA100.
These formations are rare, can be quite confusing, and are prone to a lot of morphing. I believe this one is coming to an end soon. Even if it does not come to an end, a move of size is on the horizon. I am short bias from a risk reward standpoint. I view the break of 17700 as constructive and would be looking to go long the index. I will start covering the Nikkei...
The market is moving along the upward channel and the price has hit the up trendline.Meanwhile a bearish butterfly pattern is completing at about 17400 levels and coincidentally the D of the AB=CD pattern is also at this level.
So it is good to sell short at about 17410 levels when bearish candles appear.
SL:above 17576
TP1:the centerline of the channel-about...
JPN225 arrives to a downtrend line valid since more than One year ago and now will decide where to go. A secure breakout would mean a road to the new multi-year maximums.
Nevertheless, in my opinion, we will see one more leg down, which can long several months from now, and after that a run to these maximums will continue.
I´m ready to short 17,500 zone,...
We can enter longs here (or in AUDJPY, like I reccomended to my clients), risking a small drop below low volume support). Risking 0.5% potential upside makes this trade worth it.
The weight of evidence suggests the BOJ will help us make some decent progress on this position soon.
Cheers,
Ivan Labrie.
