I don’t issue buy or sell recommendations & don’t trade on any info that is supplied here. This chart is for educational purposes only.
We have a “Doji” type candle today which denotes a lot of indecision in the market. It has a bullish higher high & a higher low trend as compared to yesterday’s spinning top candle. Yesterday’s gap down still hasn’t been covered so it’s still in play.
As forecasted in my previous post the SP bounced off the now confirmed trend line & an old support line. This new trend line confirmation will come into play again in the future if the SP retraces back down.
Both the Tenkan-sen & Kijun-sen have turned flat which is an attractor of price activity in the short & medium timeframes. The Chikou Span is hitting the Kijun-sen which is a sign of resistance. The Chikou Span being under the SP means it’s a bearish market.
The Kumo or the “cloud” is thin so the SP will find it easier to break through over the coming weeks as compared to a much thicker Kumo, but it will experience a bit of resistance until it breaks through. It will have more resistance the closer it trades to the Tenkan-sen which is just above the cloud around the 18 cent mark. The top of the cloud will also be a resistance area. The SP finished the day just on the cusp of the Kumo which means the overall market is bearish. SP inside the Kumo is neutral, above is a bullish market.
Volume is red & picking up a bit compared to last week.
RSI is at 36 and rising. Anything under 30 is considered to be oversold.
MACD is curving very slightly & the histogram confirms it. If these two lines cross in the future it’s a buy signal.
Overall for the foreseeable future, a lot of indecision in the SP movement & a bit of resistance expected.
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