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Thursday, November 12, 2009


Beginning with a Weekly chart the Ichimoku and MoneySpy both remain Bullish. This is a very long term chart and does not track the immediate market. The thing to notice is the support levels . Both the Kijun-sen and the Kumo will offer support at about 1055. Next week that support will begin to fall to about 1040. If the Kumo is broken this line will become resistance.

Moving on to the Daily chart the Tenkan-sen is on the verge of crossing back above the Kijun-sen. If that happens the chart would go from a warning to the Bulls and become completely Bullish. MoneySpy is indicating some weekness after forming a peak. I consider this chart to be long term and use it to see the strength of the long term trend.

The Kijun-sen will offer support at the 1065 area and the Kumo around 1040. Price is always being attracted toward the Kumo and at this point there is a large gap between them. This is adding downward pressure .

Finally the M60 chart is showing a sell signal. It has waffled across the Buy/Sell line several times and may once again turn back but this is the most reliable indicator I have and it's Bearish.

The Tenkan-sen is trying to break the bottom of the Kumo and has already created a Bearish Tenkan/Kijun cross. Once the bottom of the Kumo is broken this chart will be Bearish and complete confirmation will occur when the Tenkan-sen and Kijun-sen are also below the Kumo.

The Andrews Pitchfork has yet to be violated and price will likely hesitate on it's bottom line. I've drawn a new downward pitchfork (green) but that may be a bit premature.

I've added EW Notation, I'm not real sure about the accuracy, but it appears we may have completed wave ii and are beginning wave three. If so the market should begin to move with downward conviction very soon.

Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling currency contracts.

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