4-hour timeframe
Overview:
The downside movement has started. New sell signal with the target to 80.74 formed. This signal is strong and confirmed, as the price is below the Ishimoku cloud and the Chinkou Span managed to fixate below the price graph. The first support level of 81.98 is the current target for downwards movement. In case this level is passed the next target will be the second support level of 81.28. The Kijun-Sen (83.45) is the critical level below which the downside movement is still presented, it is recommended to cut short positions above this level. The Chinkou Span is below the price graph, which means the bearish sentiment and confirms the sell signal. The Bollinger bands show the downwards motion, the lines are diverging and directed down. MACD is descending, thus indicating the current downside movement, in case this indicator reverses to up, this will indicate the beginning of the correction.
Trading recommendations:
Currently it is recommended trade down with the first target to 81.98. Stop Loss is placed above the Kijun-Sen (83.45). If the MACD reverses to upside, the short positions should be closed.
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.
