Doji Star not confirmed

Weekly: CPG fell by 15% this week and while we still see the weak bullish signal via the Tenkan Sen / Kijun Sen Cross, Chikou Span continue to disagree with the sentiment thus making the already weak bullish signal weaker. We have seen that 1.55 is an interesting level for CPG so we need to monitor this level. If price will continue to drop from here then most probably we will have a strong bearish signal that will come out. Notice also how the Kumo or cloud succeeded in preventing the price from going up.

Daily: The Doji Star we saw last Thursday (CPG is still alive. Doji Star may signal a reversal) which we speculated to bring us a reversal did not happen and instead it brought us another red candlestick. Price is now at the mercy of its support zone which is the Kumo. Notice that Chikou Span is now agreeing with the bearish bias shown by the weak bearish signal from Tenkan Sen / Kijun Sen Cross. Chikou Span may change its sentiment if price will close above 1.60 and continue to rise to 1.7 level. Remember that Chikou Span reflects the previous 26 periods. If 26 periods ago the price is above the current price, it means we have a bearish signal. If price today is higher than the price 26 periods ago then we have a bullish signal.

RSI or Relative Strength Index remains flat and is at oversold level.

Caveat!

Leave a Reply