Overview:
The sideways movement looks like finished. The Bollinger Bands have started to diverge and the price- to move upwards. A ‘buy’ signal targeted to 1,3815 is being formed. At the moment, it is recommended to trade long with this very target.
The price has managed to stick above the pivot level, though now a correction in the direction of 1,3700 – 1,3670 is possible. A new entry after the correction can be identified by upward recoil of MACD. If the price fixates above 1,3815, the following price target will become the resistance level- 1,3862. In case of price fastening below the Kijun-sen, a ‘buy’ signal will decline. The Chinkou Span is above the price chart, which by far, signals an ascending movement. The Bollinger Bands show a rising movement as the lines are diverging and up-directed, which signals about the rising movement as well. MACD is descending signaling the current correction development.
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Trading recommendations:
Under the circumstances, it is advised to trade long with the first target 1,3815, and in case of fixating above the level of resistance the target will be 1,3862. The stop-loss in this case is setup lower than 1,3666. We can enter the market with long-term positions only after the MACD reverse upwards.
The picture clarification:
Ishimoku indicator:
Tenkan-sen — red line
Kijun-sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.
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