Evening Folks
Firstly apologies for the delay in posting the weekly chart as I got stuck at work later than anticipated.
Anyway the weekly ichi chart is starting to look very interesting. We can see the larger pink curve showing a rounded bottom and a smaller blue curve within it that could potentially end up as cup and handles. If the right side of the chart plays out in a similar pattern to the left side of the chart it could suggest that the SP is about to start a more progressive rise. Looking at the dark blue arrows these give us an indication of where the SP currently sits in comparison to each side.
We can see that the SP has found resistance at the bottom of the right bearish Kumo (cloud). It is technically considered to be in a downtrend on the weekly ichi chart because it is below the Kumo. Once it pushes through the Kumo it will no longer be in a downtrend as it is considered to be consolidating in the Kumo however when it breaks out above the Kumo it will be in an uptrend.
While the SP is still in bearish territory there are a few bullish indicators to note:
1. the Chikou Span (green lagging line) is above the SP which indicates ST bullish momentum
2. the Tenkan Sen is above the Kujin Sen (TK KS cross) which indicates ST bullish momentum
3. the SP is above the Kujin Sen (KS cross) which indicates ST bullish momentum
4. the bottom of the far right (future) bearish kumo has started to rise
…….also over the past few weeks the volume has increased and risen with the SP and pulled back on lower volume with the SP indicating more buyers than sellers.
So on the weekly ichi chart what we should be looking for going forward ST/LT are the following:
1. the Chikou Span (green lagging line) to stay above the SP
2. the SP to stay above the Tenkan Sen and Kujin Sen
3. the Tenkan Sen to stay above the Kujin Sen
4. the SP to push through the bottom of the Kumo which should help form a Kumo Twist and a future Bullish Kumo
5. a Kumo Breakout (with volume) where the SP breaks out above the top of the large bearish Kumo on the right - resistance/support at the top of the kumo is .031
Looking forward to next weekend - have a nice weekend all.
Cheers
SL
