TA waiting for more confirmation

Weekly: Interesting price movement for TA last week as it bounce from the Kumo. Observe how the price on previous week touched the cloud and then this week it bounced. The last two candlesticks are also forming an Engulfing pattern which may suggest a reversal although its a weak signal and needs confirmation the following week.

Daily: We saw a Kijun Sen Cross last Thursday which gave at least a little bit change of sentiment and although we have seen some took profit after the two days rise from the 50% Fibonacci Retracement level, the price didn’t went below the Kijun Sen line which is our immediate support. With Doji as our last candlestick, there is a chance that the newly found support will be tested. A continued rise in price may also hit the resistance line at 61.8% Fibonacci Retracement level which is also where our Kumo (cloud) is. As of this moment our confidence is not yet that high. A Tenkan Sen / Kijun Sen cross may add more bullish to our sentiment if that will happen.

RSI or Relative Strength Index is neither oversold or overbought at this time.

Caveat!

 

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 Weak (Bearish)
Chikou Span Cross (Bearish)

Daily Chart 11-Oct

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

One Response to TA waiting for more confirmation

Leave a Reply