Mode: Cyclic, but one Cycle Indicator has indicated beginning of down trending prices which has to be confirmed by a daily major cycle.
Review of Yesterday’s Analysis:
Trading recommendation – CorrectCycle Analysis: Prices have gone above 80.45 crucial level riding on a minor cycle. It may continue moving up today. Daily frequency major cycle unexpectedly turned up yesterday before reaching its bottom. Prices can see 81.5/82 after crossing major hurdle of 80.76/86 and they need to remain above 80.45.
S/R Levels – 100% Accurate
Direction View - Correct
Yesterday it was mentioned that a bounce back can be expected as a minor cycle starts moving up – and exactly that happened. Recommendation was “Sell on rise near 80.7/8 with SL 80.9 and targets 80.45/80.34/80”, DX made a high of exactly 80.8 and a low of exactly 80.34!
• Sell Signal: Prices are expected to move up as both minor and major cycles are moving up. Avoid short selling today.
• Buy Signal: Pullback can be expected today.
Conventional Technical Analysis:
Bearish setups –Key S/R Levels:
1. Price is below 61.8% retracement of 81.23
2. Price is below the last support of the speed resistance lines
3. Price failed to close above peak of 80.69 (point ‘a’ closing price) at its next peak of point ‘c’.
Bullish setups –
1. The momentum indicator (bottom panel), had given a clear re-accumulation buy signal at bottom point ‘b’, where the indicator had a higher bottom compared to its previous bottom. The re-accumulation is shown by green rising arrow in indicator panel and blue declining arrow in price plot.
There are mixed indications, but since cycles are indicating a pullback and there is also a chance of breaching support of 80.45. There is high risk of strong moves on any sides. 80.45 is a crucial level and if price go below this level, further downside is very much possible.
• Resistance Levels: 80.76 – 80.86 – 81 – 81.2 – 82 – 82.8
• Support Levels: 80.45 – 80.34 – 79.98 – 79.85 – 79 – 77
Risk: There can be breakout spike above 80.86 or a downside spike below 80.45.
Recommendation: Avoid trading.
No comments :
Post a Comment