4-hour timeframe
Overview:
The price moved into side channel which is limited by the Bollinger Bands. The current buy signal is strong and confirmed as the price strengthened above the Ishimoku Cloud and the Chinkou Span is above the price curve. The price is above the pivot level that is why the current target for the uprising movement is the first resistance level of 84.09. However, the Bollinger bands indicate the flat, so it is not recommended to trade up until the Bollinger Bands start to diverge. If the level of 84.09 is broken through the next target will be the second resistance level of 84.06. In case the price fixates below the Kijun-Sen (83.40) then the current signal will weaken and at this point long positions should be cut. The Chinkou Span is above the price graph, thus indicating the bullish sentiment. The Bollinger bands show the sideways movement, the lines are directed sideways and converged, thus pointing to flat and probable change in movement’s direction. MACD is descending, but the price is not declining, so we can make a conclusion that until the price correction starts the indicator can be ignored.
Trading recommendations:
Currently, it is recommended trade up with the targets to 84.09 and 84.60. The stop-loss is set below 83.40. We enter the market only after Bollinger Bands start to diverge.
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.
