Week 30 - Market Update
Hello traders, welcome to your moment of zen :) We had a nice upweek last week, activating our trade. Today we reached our first target, so our members should (and probably did ;)) at least take partial profits. Let’s look at the markets to see how price is developing and we can find possibilities for re-entry towards our max target.
Let’s start with the weekly chart
WEEKLY
We can see that we broke out of the channel today. We’ll have to wait for this to confirm before we take this seriously, the week has just begun. Nothing much has changed on ichimoku, we are still are bearish. Except… chikou span has moved into contact with price after last weeks and this weeks developing move in price. This indicates that the down move has turned into a consolidation. As we’re still below the kumo we can look for short entries when this upwards move ends. Look at the dotted blue line. It is the kijun projected into the future.If no new highs or lows are made in the coming 4 weeks the kijun will remain flat. This sets us up for potential short trades of the weekly kijun bounce.
At the moment we are still in a long trade, and we expect the bullish move to take perhaps a few more weeks. So let us focus on that, time will bring us that short trade.
DAILY
We reached our first target today, and our members should have taken partial profits here, waiting for price to move further or correct. Price is attempting to break out of the kumo today. which is a bullish sign. Yet this signal cannot be blindly traded, kijun is still well within the kumo and the distance between the price and kijun is large. Getting into the trade now would be… stupid.
Momentum shows us that price wants to consolidate, and are expecting bulls to take some profit causing a ranging behaviour. We may consider re-entry after we see what unfolds in the coming few days, perhaps in a break of the ranging movement. We have to allow price and time to guide us..
For now the active traders can tighten their SL to around 7000, sit on their partial profits and wait for the trade to reach our max target. We might see a reaction at the target 2 level. again taking another partial profit there would not be a bad idea, but that depends on how we reach it. If we get a significant pull back or ranging period before reaching it we suspect it to blow through to the max target. After all this develops we can consider short entries in the red box, if we find a confluence of bearish entry signals. But all that in due time, we expect it to take several days if not weeks before that happens.
The 2 hr chart isn’t giving us a clearer picture. Price is working to break through our first target, and the chart looks quite bullish.
We will have to wait, following the action path laid out on the daily timeframe. We will look for some possible re-entry into the bullish trade, but have to see from where the pullback will begin. From there we can look for possible re-entry areas and momentum for the next push.
Invalidation: 7000
First target: 7775 (Reached)
Second target: 8157
Maximum target: 8360
We hope this was helpful! And remember,
Be patient, only time will bring you profit.
