Doji Star on ALI?

Weekly: Weekly chart is showing a bullish ALI based on the Kumo Breakout and Kijun Sen cross. Although confidence is quite high at this time, Chikou Span didn’t confirm the full reversal just yet, as current price is below the price corresponding to the Chikou Span. Since we have broken the Kijun Sen, this is now our immediate support on weekly chart in case a correction will happen.

Daily: Daily chart is showing a Doji Star at the top of the trend and incidentally near our 61.8% Fibonacci Retracement level resistance line. Doji star candlestick means there is an indecisive mood among traders on whether to continue pushing the price or price should go down. At this point the bulls and the bears are in equilibrium. If this will be followed by a large red candlestick then this may retrace. RSI or Relative Strength Index has also gone up near the 70 level or start of overbought level. The psychological support which is 30 may be tested and if broken, next support may be a little bit deep at 28.78

A month ago, ALI’s RSI went near 70 and retraces back to 40+ and price also dip from 1 Fibonacci level to another. Let’s see if we will have the same scenario this time.

Caveat!

 

Indicators based on Ichimoku system

Indicators based on Ichimoku system
Weekly Chart Oct 7 – 11, 2013

Price location relative to Kumo (Bullish)
Tenkan Sen/Kejun Sen Cross (Weak Bearish)
Kijun Sen Cross (Bullish)
Chikou Span Cross (Bearish)

Daily Chart 11-Oct

Price location relative to Kumo (Bullish)
Tenkan Sen/Kejun Sen Cross (Weak Bullish)
Kijun Sen Cross Weak (Bullish)
Chikou Span Cross (Bullish)

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