4 - hour timeframe
The total picture:
The price is still continuing its downward movement, having reached the first support level at 1,4498. The formed signal for sale has not been canceled yet, but we can see that Ishimoku target is fixed (the level of 1,4602), so, more likely, that the descendant movement formation will happen soon and at least there will be the correctional motion. From the other side, there are no signs of the reversal now, that is why the downslide motion may last for a while. It is recommended to wait for the purchase signal development, analyze its power and only after that to enter the market with long positions. Bollinger bands are down – directed, which also signals about the descendant movement continuation; The lines are widening again, which means that the extension is possible. MACD also supports this trend, it can not raise even to the zero level.
Trading recommendations:
For those who are in sales now, it is recommended to reduce short positions at the first sign or when the reversal happens. For those who are out of the market, it is recommended to wait for the purchase signal formation, and then to open long positions with the first target at 1,4700. The alternative variant can be the sale with the purpose of 1,4380, in case the price strengthens at the inferior timeframe below 1,4498. In this case, it is needed to set the stop loss at 1,4602.
The picture clarification:
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.
Have fortunate trades,
Stanislav Mikhailovich
December 16, 2009
