Start to cover your shorts! Warning signals
Daily:
- Neutral Ichimoku setup: price in the Kumo. Setup is similar a bit to the one seen in March.
- EWO is bearish, but level is exactly the same as it was during the March low.
- Price drop was very impressive and quick, but now Price is too far below Kijun Sen. Price reached Kumo bottom and trendline support.
- haDelta already had some early warning yesterday. Next warning for bears today is the candle itself: inside doji candle = momentum loss, indecision, possible reversal ahead. haDelta/SMA3 ticks higher, but still below zero line.
4H:
- Ichimoku setup is neutral, 100wma and Kumo cloud still well above price. But price seems to break the steep trendline, and testing Kijun Sen. In case it stucks above Kijun, short covering will accelerate.
- Heikin-Ashi is in bullish swing. What we really have to watch here is haDelta/SMA3! It is above zero now, with a higher high!. We may see one more push lower from Kijun, but if price can't make a lower low, and haDelta/SMA3 can not drop back below zero, but crosses up again, then we'll see market higher soon.
- EWO is bearish, but it has started to develop a bullish divergence
So we have the early warning signals. Short positions don't have very good risk/reward from now. We may actually start to think about some swing longs too, but wee need a little bit more confirmation.
First swing long tgt is 1,1250+
- Neutral Ichimoku setup: price in the Kumo. Setup is similar a bit to the one seen in March.
- EWO is bearish, but level is exactly the same as it was during the March low.
- Price drop was very impressive and quick, but now Price is too far below Kijun Sen. Price reached Kumo bottom and trendline support.
- haDelta already had some early warning yesterday. Next warning for bears today is the candle itself: inside doji candle = momentum loss, indecision, possible reversal ahead. haDelta/SMA3 ticks higher, but still below zero line.
4H:
- Ichimoku setup is neutral, 100wma and Kumo cloud still well above price. But price seems to break the steep trendline, and testing Kijun Sen. In case it stucks above Kijun, short covering will accelerate.
- Heikin-Ashi is in bullish swing. What we really have to watch here is haDelta/SMA3! It is above zero now, with a higher high!. We may see one more push lower from Kijun, but if price can't make a lower low, and haDelta/SMA3 can not drop back below zero, but crosses up again, then we'll see market higher soon.
- EWO is bearish, but it has started to develop a bullish divergence
So we have the early warning signals. Short positions don't have very good risk/reward from now. We may actually start to think about some swing longs too, but wee need a little bit more confirmation.
First swing long tgt is 1,1250+
