Overview:The decreasing movement is finished, “sell” signal has canceled and new “buy” signal has formed with the target level at 1.3696. Although the “buy” signal has not been confirmed by neither the price strengthening above Ishimoku, nor Chinkou Span fixing above the price curve yet. Therefore, waiting for confirmation of the current signal is advisable, after that opening “buy” positions will be possible. Current mid-target of the upward movement is 1.3560 – the first resistance level. In case of the price fixing above this point, the next target will be at 1.3696 – the second resistance. If the price curve lies below Kijun-sen, “buy” signal will weaken and it will be necessary to close long positions. Chinkou Span is placed below the price curve that testifies to a downward tone. Bollinger bands show the increasing motion – the bands are diverging and up-directed that signals about a rising tendency. MACD is climbing up, which speaks for the current uptrend.
In these circumstances it is recommended to tarry for the current “buy” signal confirmation, after that one can bull with the first target at 1.3560. Stop loss to set below 1.3385 in this case.
The chart annotation:
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
The red line and the histogram with the white bars in the indicators window.
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