4-hour timeframe
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Overall picture:
The ‘buy’ signal with the target level of 1.5666 keeps on. This signal is strong and confirmed, as the price has fixated above Ishimoku and Kijun-sen and Chinkou Span is above the price curve. At the same time, the price managed to fixate above the first resistance level of 1.5802, but it did not overcome the second resistance. Therefore, the intermediate target of the ascendant motion remains the second resistance level of 1.5917. It should be taken into account that the target level of 1.5666 has been already reached, but on the other hand, there are no any signs of the upward movement ending. After the price overcoming the resistance level of 1.5917, the target will be the third resistance level of 1.6112. Chinkou Span is above the price curve, which speaks for a rising trend. If the price fixes below Kijun-sen (1.5770), the purchase signal will weaken and long positions are better to close. Also, a correction is possible to take place now, therefore, in case of MACD reversal downwards bullish trading is not recommended. Bollinger bands indicate an increasing movement – the bands are converging and up-directed. MACD is moving up signaling about a probable correction.
Trading recommendations:
The current situation suggest to bull with the target at 1.5917 and further to 1.6112. Place stop loss below 1.5770. Enter the market only after MACD up-reversal.
Besides the technical picture, it is important to take into account the fundamental reports and time of their release.
The chart annotation:
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.
