4-hour timeframe
Overview:
The sell signal is still observed, the Bollinger Bands converge, thus indicating the possible completion of the downtrend or correction. The sell signal is strong and confirmed, as the price is below the Ishimoku cloud and the Chinkou Span is below the price chart. In addition, it should be said that the price is below the pivot level now, and the first support level of 80.72 is a target for movement. In case this level is broken through the next target for downside movement will be 80.08 - the second support level. If the price cannot breach this level, the correctional uptrend can start. If the price is above the Kijun-Sen (81.50), this will denote the weakening of the sell signal and point to reduce short positions. The Chinkou Span is below the price curve, testifying about the bearish sentiment. The Bollinger Bands show the downwards motion, the lines are converging and directed down, thus indicating the possible completion of the downtrend. The MACD is ascending, pointing to the current correction.
Trading recommendations:
Currently, it is recommended to trade short with the target to 80.72 and further to 80.08. Stop-loss is set above 81.50. We enter the market after the MACD reverses down.
In addition to technical image, one should take into account the fundamental data and the 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.
