Hi Folks
Hope you’re all enjoying your weekend. Looking at the
Daily ichi chart over the past week we can see the bearish candle on Monday (4C released after market close) and a larger bearish candle on Tuesday when the SP gapped down to 1.6 - On Wednesday with the release of the Visiontec ann the SP bounced off the ascending triangle trend line, the gap was closed and the SP finished the week at 1.7 - overall this week the SP ended down 1 pip from the same time last week. This is a healthy pullback and one we needed to have if the SP is to
sustain a steady rise.
In terms of the
daily ST ichi indicators going forward we need:
- the chikou span to rise above price
- the tenkan sen to rise above the kujin sen
- the SP to rise above the tenkan sen and kujin sen
It is important to note that while the SP is rising (with higher volume) and falling (with lower volume) -
overall the SP is rising with more buying than selling and it's
still in an uptrend (above the kumo). As the SP evolves we can start to see more patterns emerging with an ascending triangle now forming on the daily chart and a potential breakout above 2.3
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Looking at the
Weekly chart can help us to keep our emotions in check and help us to put this weeks pullback into perspective. As mentioned previously the dark blue arrows give us an indication of where the SP currently sits in comparison to each side of the chart and how things could potentially play out.
We can see that the SP is consolidating on the edge of the kumo (cloud) in neutral territory. It’s important to note that while a red candle formed on the chart this week, it is our first red candle in
10 weeks - imho a pullback was needed. Again we just need to be patient and give the SP time for the right side of the chart to play out - GLTAH.
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Cheers
SL
