Care your longs, consolidation and pull back is possible
While I precisely saw the major bullish divergence around 8,85 low, I missed this bullish reversal and breakout trade. (I traded EURCAD long instead). But some people may still have bullish position, so I thought I share my view and a few warning signals.
Daily:
- Ichimoku is bullish. In fact it is "too bullish", price is far above 9,0150 equilibrium, marked by Kijun and forward Senkou B -> overbought condition, market should consolidate and let averages catch up, or pull back a bit towards equilibrium.
- Heikin-Ashi is bullish, but it's already clear that haDelta and haOscillator have started to build some short term negative divergence. haOscillator is below central line.
- Possible short term bearish wedge pattern is forming, as the price increase was very agressive from the lows.
- EWO is bullish, but it might print a double top in value
- MACD is bullish, with lines slowly converging
4H:
No more additional info here, just to see more precisely the supports:
9,1865 / 9,14 - 9,1560 / 9,10
Startegy: If you are long, sell covered calls and/or reduce some of your bullish exposure in 9,21-9,25 zone
Daily:
- Ichimoku is bullish. In fact it is "too bullish", price is far above 9,0150 equilibrium, marked by Kijun and forward Senkou B -> overbought condition, market should consolidate and let averages catch up, or pull back a bit towards equilibrium.
- Heikin-Ashi is bullish, but it's already clear that haDelta and haOscillator have started to build some short term negative divergence. haOscillator is below central line.
- Possible short term bearish wedge pattern is forming, as the price increase was very agressive from the lows.
- EWO is bullish, but it might print a double top in value
- MACD is bullish, with lines slowly converging
4H:
No more additional info here, just to see more precisely the supports:
9,1865 / 9,14 - 9,1560 / 9,10
Startegy: If you are long, sell covered calls and/or reduce some of your bullish exposure in 9,21-9,25 zone
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.