Rising wedge at the upper narrowing trend channel line hitting a strong Resistance zone. Shall go down
Analysis shows that it could be the fact. (More detail will follow) In order to get a better entry, wait for daily retracement to the level of red pierce line Note: the price jump at the point where long term trendline meets wedgeline is amazing
The mega Head and Shoulders formation shown on the chart holds and the price movement responds to it accordingly. Although there are a few more steps left to finally declare the formation (still not finished), we may assume that the price can go all the way to 1.23 levels where we have a "Neckline" (shown as dotted line). Then again, USDCAD is a commodity pair...
Here on the chart we can see that the major trend, which has lasted for 6 months (beginning of 2016) has finally lost track. The trend channel is definitely broken down. Lately there was an attempt to go back to the trend channel, but seems like it lost track and the price hitting the lower trend line started going back down. I am not saying that the oil price...
Technically a promising point for LONG. There is a thrust developing at cross points. The price is on top of a major support, also taking support from 200 days moving average. If we consider the first move (at Brexit) the first wave (check out 1-5 wave on chart), it seems that we already have a correction (ABC on chart). Also the price is resting on the upper...
After the Brexit, the dollar advanced as a safe heaven, as expected. It then hit the strong resistance zone (shown as the red box on chart). There was a bear wedge (indecisiveness) and as expected price went down. Currently we see what looks like an ABC formation and as we speak, there is a strong Thrust developing. There is certainly a good deal of push required...
Very high risk entry for long. Bunch of signals that the price may go down to 1.24 and even lower. 1- The fall did nor flinch at 1.28, where there was a strong resistance. This means weakness 2- There is a Neckline (shown as a dotted line on chart), which could be a possible neckline of a large scale Head and Shoulder formation (though not clear yet) 3- Multiple...
I have updated the chart by the recent developments. Previously drawn ABC formation is now turned out to be a 1-5 wave formation. The first Test Point (shown on the chart as hand) did NOT hold, which highlights weakness. The probability the price reaching 1.24 levels is more likely than not at this point. Besides; -Oil is quite strong still. I expect Brent Oil...
Technical analysis is all about being able to measure the Strength in order to predict the direction of the markets. For that we use patterns, volatility, breakouts, zones. On top of that we use our accumulated experience over the years. It is not a perfect science but I would call it rather an art where intuition is involved. For the USDCAD we are in a state...
We are most probably out of the long term bear market that lasted a few months. The sharp thrust which occurred at the beginning of may was a clear signal for that change. We are more than not into a new bull cycle. If this is true, there will be very good and profitable up moves ahead of us. We shall especially look for 3rd wave impulses. On the side of the...
I know many of the traders are impatient now and they must be asking themselves this question (like myself). There are the following reasons that the timing is NOT ripe yet. If you can stomach some draw downs then it may be perfectly OK to enter for you but I will list 2 important facts and I will wait until these 2 conditions satisfy me in order to enter...
At current point 1-Daily Resistance Level (strong) 2-Long TERM Trendline Upper Channel line touched (red) 3-High Divergence = Exhaustion (MACD) 4-Parallel hourly channel upper line touched (violet) 5-Correctional ABC pattern Possible retrace shown by red arrow. With that many bearish indications, I would stay aside and hot jump into a long position. However, for...
It is now in my watchlist. GBP started performing very well against USD too. With a bear CAD against USD, this pair could be a "cream a la cream" candidate to go long. Watching closely.
Seems like there is still some juice left to reach the upper channel trendline, where the wave counts complete. Before jumping long in USDCAD, I would wait for this point to be reached and the Oil changing it's course. USDCAD is also at the boundary of it's own trend channel (analysis will follow), with a wedge noticed at minor timeframe levels. Not the perfect...
Neckline still not broken. Price at the top wedge channel line with heavy resistance. Possible target shown on chart. Don't forget that Head and Shoulders are very potent formations. Not the time to buy SP500 for sure. Good trades.
15min chart below. Notice the wedge and volatility. The price will possibly turn lower, as there is no evident strength. Price is at the top line of the channel as shown on the chart. A possibility is even a retrace back to the lower channel line at around 1.27 levels. This I can not be sure, however I don't see any major breakout in the up direction at this...